AUEB

* We thank two anonymous referees of this journal, Tibor Besedes, Mario Crucini, and participants at the Winter 2009 Banque de France Seminar Series, the Fall 2008 Toulouse School of Economics seminar series, the Fall 2008 Tufts University Department of Economics seminar series, the Spring 2008 AUEB seminar series, the Summer 2007 Microeconomic Pricing in an Open Economy Workshop at CEU-Budapest, the Spring 2006 Midwest Macroeconomics Conference at Washington University St Louis, the Spring 2006 Universite Cergy-Pontoise THEMA Seminar Series, the Spring 2005 Midwest International Economics Meetings at Vanderbilt University, and the ECB-CFS-Bundesbank Fall 2005 Seminar Series for useful comments and suggestions.