The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations
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NBER Working Paper No. 11699*
Issued in October 2005
NBER Program(s): EFG
IFM
ME
Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.
*Published:
Burstein, Ariel, Martin Eichenbaum and Sergio Rebelo. "The Importance Of Nontradable Goods' Prices In Cyclical Real Exchange Rate Fluctuations," Japan and the World Economy, 2006, v18(3,Aug), 247-253.
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