Real exchange rate dynamics in the presence of non-traded goods and transaction costs

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초록

This paper studies the role of non-traded goods and transaction costs in accounting for the puzzling behavior of real exchange rates. We show that introducing the transaction costs and non-traded goods in an otherwise standard competitive model dramatically improves its ability to rationalize observed real exchange rate dynamics. (c) 2009 Elsevier B.V. All rights reserved.

키워드

Real exchange ratePersistenceVolatilityNon-traded goodsTransaction costs
제목
Real exchange rate dynamics in the presence of non-traded goods and transaction costs
저자
Lee, InkooShin, Jonghyup
DOI
10.1016/j.econlet.2009.12.003
발행일
2010-03
유형
Article
저널명
Economics Letters
106
3
페이지
216 ~ 218