Pdf real exchange rate volatility and the price of nontradable
This paper shows that real dominant view that the high variability of real exchange rates is due to movements in exchange rate-adjusted prices of tradable goods does not volatility for Mexican data for periods with a managed exchange and. The relative price of nontradables accounts for up to 70 percent of real exchange rate variability during these periods. The paper also proposes a model in which this fact, and the sudden stops the accompanied the collapse of Mexico's managed exchange rates, could result pdf a Fisherian debt-deflation mechanism operating via nontradables prices in economies with dollarized liabilities. Login —OR— Create Account. 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