Seminar by Juan Carlos Martinez Oliva: Can real exchange rate and relative demand changes help the eurozone?

Juan Carlos Martinez Oliva will present a paper that addresses the issue of the role of the real exchange rate and of relative demands in the eurozone member countries based on a disaggregated approach that takes into account the trade ties of all 17 countries. Trade flows are taken into consideration, with the aim of achieving a bilateral measure of price and income elasticities of foreign trade. Based on an original computational approach, the overall system of 272 trade flows is then used to derive the vector of prices and GDPs, which are consistent with the needed amount of adjustment.

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