Can producer currency pricing models generate volatile real exchange rates?

Povoledo, L. (2012) Can producer currency pricing models generate volatile real exchange rates? Economics Letters, 116 (3). pp. 436-439. ISSN 0165-1765 Available from: http://eprints.uwe.ac.uk/16661

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Publisher's URL: http://dx.doi.org/10.1016/j.econlet.2012.04.033

Abstract/Description

If the elasticities of substitution between traded and nontraded and between Home and Foreign traded goods are sufficiently low, then the real exchange rate generated by a model with full producer currency pricing is as volatile as in the data.

Item Type:Article
Uncontrolled Keywords:real exchange rate volatility, producer currency pricing, elasticity of substitution, new open-economy macroeconomics
Faculty/Department:Faculty of Business and Law > Department of Accounting, Economics and Finance
ID Code:16661
Deposited By: Dr L. Povoledo
Deposited On:23 Apr 2012 11:07
Last Modified:18 Apr 2017 04:22

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