Working Paper: NBER ID: w11699
Authors: Ariel Burstein; Martin Eichenbaum; Sergio Rebelo
Abstract: Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.
Keywords: nontradable goods; real exchange rate; tradable goods
JEL Codes: F31
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| price of nontradable goods (P22) | real exchange rate (rercpi) (F31) |
| price of tradable goods (F16) | real exchange rate (rercpi) (F31) |
| price of nontradable goods relative to tradable goods (F16) | real exchange rate (rercpi) (F31) |
| measures of tradable goods prices (F14) | real exchange rate (rercpi) (F31) |