Shocks and Exchange Rates in Small Open Economies
识别了小型开放经济体中汇率波动的国内和外部来源，发现外部冲击导致利率平价大幅偏离，且与全球风险规避和美国宏观经济相关，外部头寸影响冲击传导。
We separately identify domestic and external sources of exchange rate fluctuations in a large sample of small open economies (SOEs). We find that external shocks lead to large and predictable deviations from uncovered interest parity (UIP), while domestic shocks do not. Additionally, external shocks are linked to fluctuations in global risk aversion and US macroeconomic aggregates. We present an SOE model that rationalizes these facts. In the model, global risk aversion shocks drive exchange rate fluctuations, and a country's net external position governs their transmission. We provide evidence that a country's response to external shocks depends on its external position.