SEARCH

SEARCH BY CITATION

This study examines the persistence of real exchange rates for Western Offshoot countries over the post-Bretton Woods System. The aggregate price levels are decomposed into both tradable and non-tradable goods prices by three alternative categories. The median level of half-lives (across methodologies) is 3.27 years for median-unbiased estimation, but about twice as high for smooth transition autoregressive estimation. The median level of persistence (across categories) using a variety of methodologies ranges from 1.10 years for the consumer price index to 37.17 years for the producer price index. The half-lives indicate that considerable heterogeneity exists across alternative categories and methodologies.