Working paper icon

Working paper

Determinants of the Equilibrium Real Exchange Rate.

Abstract:

This paper presents a compact derivation of the determinants of changes in the equilibrium real exchange rate (the price index of non-traded goods relative to traded goods) in a small open economy with any number of goods and factors. It is shown that the change in the real exchange rate equals a simple weighted sum of the differences between the marginal propensities to consume and the marginal propensity to produce individual non-traded goods. Implications of the result are noted for a vari...

Expand abstract

Actions


Authors


J. Peter Neary More by this author
Volume:
209
Publication date:
1987
URN:
uuid:19604d51-0fc5-4c73-b6a0-4e1a51f269ea
Local pid:
oai:economics.ouls.ox.ac.uk:11733
Language:
English

Terms of use


Metrics



If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP