NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Real Exchange Rate Movements and the Relative Price of Non-traded Goods

Caroline M. Betts, Timothy J. Kehoe

NBER Working Paper No. 14437
Issued in October 2008

---- Acknowledgements -----

A very preliminary version of this paper was circulated in November 2001. The authors gratefully acknowledge the financial support of the National Science Foundation. We would like to thank David Backus, Rudolfs Bems, Paul Bergin, Mario Crucini, Mick Devereux, Charles Engel, Gonzalo Fernández de Córdoba, Kristian Hartelius, Patrick Kehoe, Beverly Lapham, Chris Telmer, and seminar participants at the 2001 Canadian Macro Study Group Meetings, Claremont Mckenna College, FRB Minneapolis, FRB New York, FRB Philadelphia, NYU, Stanford, UC-Davis, UCLA, the University of Kansas, USC, the 2001 Annual Meeting of the Society for Economic Dynamics, the 2003 Workshop of the Jornadas Béticas de Macroeconomía Dinámica, the 2006 Summer Meetings of the Econometric Society, and the 2006 Latin American Econometric Society Meetings for very helpful comments and suggestions. We also thank John Dalton, Jim MacGee, Ananth Ramanarayanan, Kim Ruhl, and Kevin Wiseman for extraordinary research assistance and Guihong Chen for help with the Chinese data. All of the data used in this paper are available at http://www.econ.umn.edu/~tkehoe. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis, the Federal Reserve System, or the National Bureau of Economic Research.

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