DP5306 The Importance of Nontradeable Goods' Prices in Cyclical Real Exchange Rate Fluctuations
| Author(s): | Ariel Tomas Burstein, Martin Eichenbaum, Sérgio Rebelo |
| Publication Date: | October 2005 |
| Keyword(s): | nominal exchange rates, nontradeable goods, prices, tradeable goods |
| JEL(s): | F31 |
| Programme Areas: | International Macroeconomics |
| Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=5306 |
Changes in the price of nontradable goods relative to tradable goods account for roughly 50% of the cyclical movements in real exchange rates.