Real variables and the real exchange rate: The importance of traded goods in the transmission mechanism

I find that real variables affect the real exchange rate almost entirely through the relative price of traded goods. This finding casts doubt on the theoretical literature that postulates that real shocks propagate only through the relative price of nontraded goods.

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Year of publication:	2006
Authors:	Chaban, Maxym
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 6.2006, 1, p. 1-17
Publisher:	AccessEcon

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	F4 - Macroeconomic Aspects of International Trade and Finance ; F3 - International Finance
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005416820