Bache, Ida Wolden; Næss, Kjersti; Sveen, Tommy - Norges Bank - 2009
In an influential paper Engel (1999. Accounting for U.S. Real Exchange Rate Changes, Journal of Political Economy 107, 507-538) argues that essentially all the flctuations in the real exchange rate can be attributed to fluctuations in the relative price of traded goods, and that only a small...