Real exchange rates and primary commodity prices : Mussa meets Backus-Smith

João Ayres, Constantino Hevia, Juan Pablo Nicolini

We show that explicitly modeling primary commodities in an otherwise totally standard incomplete markets open economy model can go a long way in explaining the Mussa puzzle and the Backus-Smith puzzle, two of the main puzzles in the international economics literature.

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Year of publication:	December 2021
Authors:	Ayres, João ; Hevia, Constantino ; Nicolini, Juan Pablo
Publisher:	[Washington, DC] : Inter-American Development Bank, Department of Research and Chief Economist
Subject:	Primary commodity prices \| Mussa puzzle \| Backus-Smith puzzle \| Rohstoffpreis \| Commodity price \| Kaufkraftparität \| Purchasing power parity \| Rohstoffmarkt \| Commodity market \| Wechselkurs \| Exchange rate \| Schock \| Shock \| Welt \| World

Extent:	1 Online-Ressource (circa 92 Seiten) Illustrationen
Series:	Working paper. - Washington, DC : IDB, ZDB-ID 2576368-4. - Vol. no IDB-WP-1281
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	10.18235/0003838 [DOI] hdl:10419/290087 [Handle]
Classification:	F31 - Foreign Exchange ; F41 - Open Economy Macroeconomics
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014516603