NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations

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Ariel Burstein, Martin Eichenbaum, Sergio Rebelo

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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