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4 edition of The importance of nontradable goods" prices in cyclical real exchange rate fluctuations found in the catalog.

The importance of nontradable goods" prices in cyclical real exchange rate fluctuations

Ariel T. Burstein

The importance of nontradable goods" prices in cyclical real exchange rate fluctuations

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  • 35 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Foreign exchange rates -- Mathematical models.,
  • Prices -- Mathematical models.

  • Edition Notes

    StatementAriel Burstein, Martin Eichenbaum, Sergio Rebelo.
    SeriesNBER working paper series ;, working paper 11699, Working paper series (National Bureau of Economic Research : Online) ;, working paper no. 11699.
    ContributionsEichenbaum, Martin S., Rebelo, Sergio., National Bureau of Economic Research.
    Classifications
    LC ClassificationsHB1
    The Physical Object
    FormatElectronic resource
    ID Numbers
    Open LibraryOL3479401M
    LC Control Number2005620751

    c. the expected rate of change in the real dollar/euro exchange rate plus the U.S.-Europe expected inflation difference. d. the expected rate of change in the real dollar/euro exchange rate minus the U.S.-Europe real interest rate difference. e. the expected rate of change in the real dollar/euro exchange rate plus the European expected inflation. How do price ceilings and price floors restrict the free exchange of prices? Unanswered Questions. Why Barbara Spear Webster given a 'in memory of' on Murder She Wrote.


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The importance of nontradable goods" prices in cyclical real exchange rate fluctuations by Ariel T. Burstein Download PDF EPUB FB2

Their evidence suggests it is not important to distinguish between tradable and nontradable goods to understand cyclical real exchange rate fluctuations. We argue that fluctuations in the relative price of nontradable to tradable goods are an important source of RER cpi by: Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.

fluctuations in the real exchange rates of developed economies are almost exclu-sively driven by changes in the relative price of tradable goods across countries.

Their evidence suggests it is not important to distinguish between tradable and nontradable goods to understand cyclical real exchange rate fluctuations. NBER Program(s):Economic Fluctuations and Growth, International Finance and Macroeconomics, Monetary Economics Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.

Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates Advanced search Economic literature: papers, articles, software, chapters, books. The Importance of Nontradable Goods’ Prices in Cyclical Real Exchange Rate Fluctuations Article in Japan and the World Economy 18(3) February.

CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.

J.E.L. Classification: F31 ∗ UCLA. Changes in the price of nontradable goods relative to tradable goods account for roughly 50% of the cyclical movements in real exchange rates. Advanced search Economic literature: papers, articles, software, chapters, books.

Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of The importance of nontradable goods prices in cyclical real exchange rate fluctuations book cyclical movements in real exchange rates (This abstract was borrowed from another version of.

Since the retail price of those goods has low pass-through, the distribution sector will need to absorb a larger fraction of the exchange rate volatility.

As a result, the relative distribution wedge is more important for real exchange rate fluctuations. Download: Download full-size image; Fig. Trade intensity and the importance of rer by: 4. BibTeX @ARTICLE{Burstein06theimportance, author = {Ariel Burstein and Martin Eichenbaum and Sergio Rebelo}, title = {The importance of nontradable goods’ prices in cyclical real exchange rate fluctuations}, journal = {Japan & the World Economy}, year = {}, pages = {}}.

Accounting for U.S. Real Exchange Rate Changes, Journal of Political Economy) 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 part of the fluctuations can be attributed to changes in the relative price of non-tradables.

Request PDF | Revisiting the importance of non-tradable goods' prices in cyclical real exchange rate fluctuations | In an influential paper Engel ( Accounting for U.S.

Real Exchange Rate. Abstract In an influential paper Engel ( Accounting for U.S. Real Exchange Rate Changes, Journal of Political Economy) 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 part of the fluctuations can be attributed to changes in the relative price of non-tradables.

evidence suggests it is not important to distinguish between tradable and nontradable goods to understand cyclical real exchange rate fluctuations. We argue that fluctuations in the relative price of nontradable to tradable goods are an important source of RER cpi movements. This note discusses the paper "How important are nontradable goods prices as sources of cyclical fluctuations in real exchange rates.

by Burstein et al. (); tells some anecdotal stories about Author: Pierpaolo Benigno. Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.

Ariel BursteinCited by: Get this from a library. The importance of nontradable goods' prices in cyclical real exchange rate fluctuations. [Ariel T Burstein; Martin S Eichenbaum; Sergio Rebelo; National Bureau of Economic Research.] -- "Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates"--National Bureau of Economic.

Nontradable Goods and the Real Exchange Rate and Duarte (). The model includes sticky prices in both sectors, and it assumes that monetary policy is conducted with an interest rate rule of the Taylor type.

Based on the arguments by Benigno and Thoenissen ()and on the empirical results of Rabanal and Tuesta (), we only explore the.

Burstein, M. Eichenbaum, S. RebeloThe importance of nontradable goods' prices in cyclical real exchange rate fluctuations Japan and the World Economy, 18 (), pp. Google ScholarCited by: Abstract.

In an influential paper Engel ( Accounting for U.S. Real Exchange Rate Changes, Journal of Political Economy) 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 part of the fluctuations can be attributed to changes in the relative price of non-tradables.

How important are nontradable goods and distribution costs to explain real exchange rate dynamics. We answer this question by estimating a general equilibrium model with intermediate and final tradable and nontradable goods.

We find that the estimated model can match characteristics of the data that are relevant in international macroeconomics, such as real exchange rate persistence and Cited by: The Real Exchange Rate The real exchange rate, denoted RERt, is the relative price of con-sumption goods baskets across countries.

Formally, RERt≡ EtPt∗ Pt, (1) where P∗ t is the nominal price of consumption in the foreign country in units of foreign currency, Pt is the nominal price of consumptionFile Size: KB.

Get this from a library. The importance of nontradable goods' prices in cyclical real exchange rate fluctuations.

[Ariel Thomas Burstein; Martin Eichenbaum; Sergio T Rebelo]. all times. Meanwhile, the prices of nontradable goods are determined entirely by domestic mar-ket conditions. In the absence of movements in the relative prices of tradable goods, it is move-ments in the relative price of nontradable to tradable goods across countries which drive all real exchange rate fluctuations.

The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations. By Ariel Burstein, Martin Eichenbaum and Sergio Rebelo.

Download PDF ( KB) Abstract. Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates The Importance. The importance of nontradable goods' prices in cyclical real exchange rate fluctuations By Ariel Burstein, Martin Eichenbaum and Sergio Rebelo OAI identifier.

Traded and Nontraded Goods Prices, and International Risk Sharing: An Empirical Investigation: Drozd and Nosal: The Nontradable Goods' Real Exchange Rate Puzzle: Burstein, Eichenbaum, and Rebelo: w The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations: Obstfeld and Rogoff.

Tradability of Goods and Real Exchange Rate Fluctuations. so that services is a nontradable goods sector, where RE R it is the real exchange rate for the price i ndices of sector i.O b s e.

The results show that the robust result found in industrial-country data that most of the variation of the real exchange rate is due to fluctuations in prices of tradable goods and nominal.

Abstract. This paper uses a DSGE model of two small open economies to explain certain features of real exchange rate cyclical fluctuations in countries with fixed and flexible exchange rates, focusing on the role of traded and non-traded goods : Nestor Azcona.

The Importance of Nontradable Goods ’ Prices in Cyclical Real Exchange Rate Fluctuations. Martin Eichenbaum and Sergio Rebelo. Abstract. Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.

J.E.L. Classification: F31 ∗ UCLA. 70 percent of the variance of the real exchange rate. In short, whenever Mex-ico managed its exchange rate, the country experienced high real exchange rate variability, but movements in the price of nontradable goods contributed significantly to explaining it.

The Mexican data also fail to reproduce two other key findings of Engel’s work. Our paper is related to recent quantitative studies of exchange rate behavior. Chari, Kehoe, and McGrattan () assume that all goods are traded and explore the interac-tion between local currency pricing and monetary shocks in explaining real exchange rate behavior.

Our study highlights the importance of nontradable goods in accounting for ex. The Nontradable Goods' Real Exchange Rate Puzzle Lukasz A. Drozd, Jaromir B. Nosal. Chapter in NBER book NBER International Seminar on Macroeconomics (), Lucrezia Reichlin and Kenneth D.

West, organizers (p. - ) Conference held JunePublished in June by University of Chicago PressCited by: 6. The importance of nontradable goods prices in cyclical real exchange rate fluctuations', CEPR discussion paper No.

The overvaluation of Renminbi undervaluation',Author: Eric Ruscher and Guntram B. Wolff. of non-traded goods in real exchange rate fluctuations. Similarly, we find little evidence that the presence of high inflation/low inflation bilateral trade pairs in our sample raises the size of the measured relation between the real exchange rate and the relative price of non-traded goods.

Importance of foreign exchange rate. Price maintenance 'Trade liberalization and firm dynamics' 'The importance of nontradable goods' prices in cyclical real exchange rate fluctuations. The importance of nontradable goods' prices in cyclical real exchange rate fluctuations Japan and the World Economy,18, (3), View citations (24) See also Working Paper () Large Devaluations and the Real Exchange Rate Journal of Political Economy, (4), View citations () See also Working Paper ( Ariel T.

Burstein has written: 'Large devaluations and the real exchange rate' -- subject(s): Devaluation of currency, Foreign exchange rates 'Investment prices and exchange rates' -- subject(s.

How important are nontradable goods and distribution costs to explain real exchange rate dynamics? We answer this question by estimating a general equilibrium model with intermediate and final tradable and nontradable goods.

Non Tradable Goods and the Real Exchange Rate (July ). "la Caixa" Working Paper No. 03/ Available at SSRN Cited by: the prices of non-tradable items – about 10 per cent, compared with 30 per cent for tradable items.4 This means that world prices and the exchange rate typically have a relatively small direct impact on prices of non-tradable items.

However, the exchange rate has an indirect influence on the prices of File Size: KB.Causes of foreign exchange fluctuations?

can cause fluctuations in the exchange rate between its currency and foreign currencies. The importance of nontradable goods' prices in cyclical.