Currency Unions, Product Introductions, and the Real Exchange Rate
---- Acknowledgements ----
Previously circulated as "Product Introductions, Currency Unions, and the Real Exchange Rate." We thank the editors, Robert Barro and Andrei Shleifer, as well as four anonymous referees for very helpful suggestions. We benefited from comments by Mark Aguiar, Fernando Alvarez, Maria Coppola, Steve Davis, Charles Engel, Joe Gruber, Chang-Tai Hsieh, John Huizinga, Erik Hurst, Anil Kashyap, Pete Klenow, Randy Kroszner, Emi Nakamura, and Kathryn Spier. Ariel Burstein, Mario Crucini, and Gita Gopinath gave excellent discussions. Diego Aparicio, Eric Hernandez, Lionel Potier, and David Sukhin provided outstanding research assistance. This research was supported in part by the Neubauer Family Foundation at the University of Chicago Booth School of Business. The Appendix that accompanies the paper can be found on the authors' web pages. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
---- Disclosure of Financial Relationships for Alberto Cavallo ----
Alberto Cavallo has an ownership stake in PriceStats LLC, a private company that uses scraped online data to compute inflation indices.
---- Disclosure of Financial Relationships for Roberto Rigobon ----
The author has an ownership stake in PriceStats LLC, a private company that uses scraped online data to compute inflation indices."