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|
|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.