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DP5306 The Importance of Nontradeable Goods' Prices in Cyclical Real Exchange Rate Fluctuations

Author(s): Ariel Tomas Burstein , Martin Eichenbaum , Sérgio Rebelo
Publication Date: October 2005
Keyword(s): nominal exchange rates , tradeable goods , nontradeable goods , prices
JEL(s): F31
Programme Areas: International Macroeconomics
Link to this Page: www.cepr.org/pubs/dps/DP5306.asp


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

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