Real Exchange Rate and External Balance High quality books
Real Exchange Rate and External Balance
By:Mr.JaeBin Ahn,Rui Mano,Jing Zhou
Published on 2017-03-30 by International Monetary Fund
This paper contrasts real exchange rate (RER) measures based on different deflators (CPI, GDP deflator, and ULC) and discusses potential implications for the link—or lack thereof—between RER and external balance. We begin by documenting patterns in the evolution of different measures of RERs, and confirm that the choice of deflator plays a significant role in RER movements. A subsequent empirical investigation based on 35 developed and emerging market economies over 1995 to 2014 yields comprehensive and robust evidence that only the RER deflated by ULC exhibits contemporaneous patterns consistent with the expenditure-switching mechanism. We rationalize the empirical findings by introducing a simple model featuring nominal rigidity and trade in intermediate goods as the one in Obstfeld (2001) and Devereux and Engel (2007), which is shown to generate qualitatively identical patterns to empirical findings.
This Book was ranked at 19 by Google Books for keyword Nominal rigidity.
Book ID of Real Exchange Rate and External Balance's Books is cjTLDgAAQBAJ, Book which was written byMr.JaeBin Ahn,Rui Mano,Jing Zhouhave ETAG "a5DsbYUjDGE"
Book which was published by International Monetary Fund since 2017-03-30 have ISBNs, ISBN 13 Code is 9781475590524 and ISBN 10 Code is 1475590520
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