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Real exchange rate volatility and the price of nontradables in sudden-stop-prone economies /
This paper shows that the dominant view that the high variability of real exchange rates is due to movements in exchange rate-adjusted prices of tradable goods does not hold for Mexican data for periods with a managed exchange rate. The relative price of nontradables accounts for up to 70 percent of...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund,
©2006.
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| Colección: | IMF working paper ;
WP/06/88. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper shows that the dominant view that the high variability of real exchange rates is due to movements in exchange rate-adjusted prices of tradable goods does not hold for Mexican data for periods with a managed exchange rate. The relative price of nontradables accounts for up to 70 percent of real exchange rate variability during these periods. The paper also proposes a model in which this fact, and the sudden stops that accompanied the collapse of Mexico's managed exchange rates, could result from a Fisherian debt-deflation mechanism operating via nontradables prices in economies with dollarized liabilities. |
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| Descripción Física: | 1 online resource (32 pages) |
| Bibliografía: | Includes bibliographical references. |
| ISBN: | 1282448331 9781282448339 9781451908831 1451908830 1462387144 9781462387144 1452752168 9781452752167 9786613821522 6613821527 |
| ISSN: | 2227-8885 ; |