Arbeitspapier
Real exchange rate variations, nontraded goods and disaggregated CPI data
The behavior of the real exchange rate, measuring movements in the relative consumer price indexes between countries, remains a prominent puzzle in international macroeconomics. Two key theories of the real exchange rate differ in the role played by goods not traded internationally. On one hand, the theory of Balassa-Samuelson, on the other hand, models with sticky prices. This study provides new empirical evidence on nontraded goods importance in real exchange volatility by using more highly disaggregated data than used in previous literature on prices and trade between the U.S. and Mexico for the period 2002-2009. The main results suggest that the nontraded component accounts for between 69 and up to 84 percent of the real exchange rate volatility. In addition, the results show that the nontraded component is negatively correlated with the traded component despite both countries being in a flexible exchange rate regime contradicting previous literature. These results generally support the Balassa-Samuelson theory.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Papers ; No. 2012-05
- Klassifikation
-
Wirtschaft
Foreign Exchange
- Thema
-
Real exchange rates
Relative prices
Kaufkraftparität
Volatilität
Balassa-Samuelson Effekt
USA
Mexiko
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hernandez Vega, Marco A.
- Ereignis
-
Veröffentlichung
- (wer)
-
Banco de México
- (wo)
-
Ciudad de México
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hernandez Vega, Marco A.
- Banco de México
Entstanden
- 2012
Ähnliche Objekte (12)
Forecasting Inflation in Mexico using factor models: Do disaggregated CPI data improve forecast accuracy?
Endogenous trade, nontraded goods and real exchange rate variations
Consumption of durable goods under ambiguity
Price-setting and exchange rate pass-through in the Mexican economy: Evidence from CPI micro data
Railroads and economic growth: A trade policy approach
On the drivers of inflation in different monetary regimes
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Insurance against local productivity shocks
Key sectors in economic development: A perspective from input-output linkages and cross-sector misallocation
Comovimiento y concordancia cíclica del empleo en los estados Mexicanos
Price competition on network
Geldschein, 10 Pesos, 1.8.1931
Forecasting Inflation in Mexico using factor models: Do disaggregated CPI data improve forecast accuracy?
Endogenous trade, nontraded goods and real exchange rate variations
Consumption of durable goods under ambiguity
Price-setting and exchange rate pass-through in the Mexican economy: Evidence from CPI micro data
Railroads and economic growth: A trade policy approach
On the drivers of inflation in different monetary regimes
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Insurance against local productivity shocks
Key sectors in economic development: A perspective from input-output linkages and cross-sector misallocation
Comovimiento y concordancia cíclica del empleo en los estados Mexicanos
Price competition on network
Geldschein, 10 Pesos, 1.8.1931
Forecasting Inflation in Mexico using factor models: Do disaggregated CPI data improve forecast accuracy?
Endogenous trade, nontraded goods and real exchange rate variations
Consumption of durable goods under ambiguity
Price-setting and exchange rate pass-through in the Mexican economy: Evidence from CPI micro data
Railroads and economic growth: A trade policy approach
On the drivers of inflation in different monetary regimes
Should monetary policy lean against the wind in a small-open economy? Revisiting the Tinbergen rule
Insurance against local productivity shocks
Key sectors in economic development: A perspective from input-output linkages and cross-sector misallocation
Comovimiento y concordancia cíclica del empleo en los estados Mexicanos
Price competition on network