A Multilateral Exchange Rate Model for Primary Producing Countries

IMF Staff Papers, Vol. 26, No. 3, pp. 543-582, September 1979

Posted: 15 Jan 2007

See all articles by Andrew Feltenstein

Andrew Feltenstein

Georgia State University - Department of Economics

Morris Goldstein

Peter G. Peterson Institute for International Economics

Susan Schadler

International Monetary Fund (IMF)

Abstract

This paper presents a small simulation model that can be used to estimate the medium-run effects of exchange rate changes on the trade balance of a primary producing country. The model is applied to four copper producing countries, Chile, Peru, Zaire, and Zambia. The model can estimate the effect of several simlutaneous exchange rate changes. It uses a commodity by commodity approach, and allows for a high rate of inflation in the primary producer. The model is simulated numerically, based on estimated parameters.

Keywords: Exchange rates, primary producing country, copper

JEL Classification: F17, O24

Suggested Citation

Feltenstein, Andrew and Goldstein, Morris and Schadler, Susan, A Multilateral Exchange Rate Model for Primary Producing Countries. IMF Staff Papers, Vol. 26, No. 3, pp. 543-582, September 1979, Available at SSRN: https://ssrn.com/abstract=956947

Andrew Feltenstein (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States
404-4130093 (Phone)

Morris Goldstein

Peter G. Peterson Institute for International Economics ( email )

1750 Massachusetts Avenue, NW
Washington, DC 20036-1903
United States

Susan Schadler

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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