Published Classic Review of Economic Studies Online 1 Jul 2002 Published Jul 2002Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?V. V Chari · Patrick J. Kehoe · Ellen R. McGrattanChari, Kehoe, and McGrattan build a calibrated two-country sticky-price model with price-discriminating, staggered-price monopolists and find it can generate exchange-rate volatility and persistence …