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

16 Pages Posted: 30 Dec 2005

See all articles by Ariel T. Burstein

Ariel T. Burstein

University of California, Los Angeles (UCLA) - Department of Economics

Martin Eichenbaum

Northwestern University; National Bureau of Economic Research (NBER)

Sergio T. Rebelo

Northwestern University - Kellogg School of Management; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: October 2005

Abstract

Changes in the price of nontradable goods relative to tradable goods account for roughly 50% of the cyclical movements in real exchange rates.

Keywords: Nominal exchange rates, tradeable goods, nontradeable goods, prices

JEL Classification: F31

Suggested Citation

Burstein, Ariel T. and Eichenbaum, Martin and Tavares Rebelo, Sergio, The Importance of Nontradeable Goods' Prices in Cyclical Real Exchange Rate Fluctuations (October 2005). CEPR Discussion Paper No. 5306. Available at SSRN: https://ssrn.com/abstract=872858

Ariel T. Burstein

University of California, Los Angeles (UCLA) - Department of Economics ( email )

Box 951477
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Los Angeles, CA 90095-1477
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310-825-9528 (Fax)

Martin Eichenbaum

Northwestern University ( email )

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Evanston, IL 60208
United States
847-491-8232 (Phone)
847-491-7001 (Fax)

National Bureau of Economic Research (NBER)

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Sergio Tavares Rebelo (Contact Author)

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Leverone Hall
Evanston, IL 60208
United States
847-467-2329 (Phone)
847-491-5719 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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