Model Trending Real Exchange Rates
| dc.creator | Obstfeld, Maurice | |
| dc.date | 2017-04-01T14:24:01Z | |
| dc.date.accessioned | 2026-07-09T10:20:25Z | |
| dc.description | The multilateral real exchange rates of major industrial countries often contain deterministic time trends. This note develops a simple stochastic model of a small open economy with a deterministically trending real exchange rate. Real exchange rate trends are caused by differential productivity growth in tradables and nontradables. Although the model assumes complete price flexibility, it can produce a correlation between the real exchange rate and the international real interest-rate differential similar to the one that arises in sticky-price overshooting models dominated by monetary shocks. | |
| dc.identifier | doi:10.22004/ag.econ.233187 | |
| dc.identifier | https://ageconsearch.umn.edu/record/233187/files/cal-cider-c093-011.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/233187 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/617789 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/233187 | |
| dc.title | Model Trending Real Exchange Rates | |
| dc.type | Text |