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

Publication Date

23/10/2005

JEL Code(s)

  • F31

Keyword(s)

  • Nominal exchange rates, Tradeable goods, Nontradeable goods, prices

Programme Area(s)

  • International Macroeconomics

Abstract

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