Similar Search Results

Real Exchange Rate Movements and the Relative Price of Non-traded Goods

Betts, Caroline M. - 2008

We study the quarterly bilateral real exchange rate and the relative price of non-traded to traded goods for 1225 country pairs over 1980-2005. We show that the two variables are positively correlated, but that movements in the relative price measure are smaller than those in the real exchange...

Persistent link: https://www.econbiz.de/10012464210

National Price Levels and the Prices of Tradables and Nontradables

Kravis, Irving B. - 1988

This paper examines changes in national price levels and prices of tradables and nontradables and relates them to … price levels increase systematically with the level of a country's per capita income, and the ratios of tradables to … income are associated with declines in the ratio of tradables to nontradables price levels more consistently than with the …

Persistent link: https://www.econbiz.de/10012476531

On the Instability of Variance Decompositions of the Real Exchange Rate across Exchange-Rate-Regimes : Evidence from Mexico and the United States

Mendoza, Enrique G. - 2000

Variance decompositions of the Mexico-United States real exchange rate are examined using monthly data on consumer prices and the nominal exchange rate for the period January, 1969 to February, 2000. The results show that the robust result found in industrial-country data that most of the...

Persistent link: https://www.econbiz.de/10012470982

Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates : Iceland and the 2008 Crisis

Edwards, Sebastian; Cabezas, Luis - National Bureau of Economic Research - 2021

We use detailed data for Iceland to examine two often-neglected aspects of the "exchange rate pass-through" problem. First, we investigate whether the pass-through coefficient varies with the degree of "international tradability" of goods. Second, we analyze if the pass-through coefficient...

Persistent link: https://www.econbiz.de/10012496073

An Alternative Interpretation of the 'Resource Curse' : Theory and Policy Implications

Hausmann, Ricardo - 2003

between two building blocks: specialization in non-tradables and financial market imperfections. We show that if a country has … generates significant volatility in the demand for non-tradables. However, when the non-resource tradable sector disappears, the … economy becomes much more volatile, because shocks to the demand for non-tradables - possibly associated with shocks to …

Persistent link: https://www.econbiz.de/10012469279

Revisiting the Commodity Curse : A Financial Perspective

Alberola, Enrique - 2017

We study the response of a three-sector commodity-exporter small open economy to a commodity price boom. When the economy has access to international borrowing and lending, a temporary commodity price boom brings about the standard wealth effect that stimulates demand and has long-run...

Persistent link: https://www.econbiz.de/10012455495

Microeconomic Sources of Real Exchange Rate Variability

Crucini, Mario J. - 2012

We provide three sets of variance decompositions on microeconomic international relative price data. The first shows that the overall distribution of absolute deviations from the Law of One Price (LOP) is dominated by cross-sectional variation in long-term averages, not by time-series variation...

Persistent link: https://www.econbiz.de/10012460681

The Real Exchange Rate, Mercantilism and the Learning by Doing Externality

Aizenman, Joshua - 2008

This paper examines the degree to which the learning by doing externality [LBD] calls for an undervalued exchange rate, a policy suggested by recent empirical studies which concluded that mildly undervalued real exchange rate may enhance growth. We obtain mixed results. For an economy where LBD...

Persistent link: https://www.econbiz.de/10012464794

Distribution Costs and Real Exchange Rate Dynamics During Exchange-Rate-Based-Stabilizations

Burstein, Ariel T. - 2000

This paper studies the role played by the distribution sector in shaping the behavior of the real exchange rate during exchange-rate-based-stabilizations. We use data for the U.S. and Argentina to document the importance of distribution margins in retail prices and disaggregated price data to...

Persistent link: https://www.econbiz.de/10012470881

Endogenous Tradability and Macroeconomic Implications

Bergin, Paul R. - 2003

International macroeconomic models long have had difficulty explaining the surprisingly low volatility of the relative price between traded and nontraded goods compared to real exchange rates. This apparent puzzle may reflect a restrictive way of thinking about the nature of nontraded goods....

Persistent link: https://www.econbiz.de/10012468959