The Importance of Nontradeable Goods' Prices in Cyclical Real Exchange Rate Fluctuations
16 Pages Posted: 30 Dec 2005
Date Written: October 2005
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: Suggested Citation