Globally Correlated Nominal Fluctuations

Abstract

Cyclical fluctuations in nominal variables—aggregate price levels and nominal interest rates—are documented to be substantially more synchronized across countries than cyclical fluctuations in real output. A transparent mechanism that can account for this striking feature of the nominal environment is highlighted. It is based on (small) cross-country… (More)

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Cite this paper

@inproceedings{Henriksen2011GloballyCN, title={Globally Correlated Nominal Fluctuations}, author={Espen Henriksen and Finn E. Kydland and Haroon Mumtaz and Eugene Savin and Jens Sondergaard and Kjetil Storesletten and Paolo Surico and Eric Young}, year={2011} }