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This document summarizes a working paper that examines the relationship between exchange rates, competitiveness, and unemployment in major economies. It estimates vector autoregressive (VAR) models for Australia, Brazil, China, Germany, Japan, Switzerland, the UK, and US that include unemployment, GDP growth, inflation, interest rates, and real effective exchange rates. The results from using Cholesky decompositions to identify shocks depend on the variable ordering, so different orderings are discussed. Ex

Author

Wason Anne

Language

EN