Real exchange rate volatility and the price of nontradables in sudden-stop-prone economies

Real exchange rate volatility and the price of nontradables in sudden-stop-prone economies / prepared by Enrique G. Mendoza.

This paper shows that the dominant view that the high variability of real exchange rates is due to movements in exchange rate-adjusted prices of tradable goods does not hold for Mexican data for periods with a managed exchange rate. The relative price of nontradables accounts for up to 70 percent of...

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Bibliographic Details
Main Author: Mendoza, Enrique G., 1963- (Author)
Format: eBook
Language:English
Published: [Washington, D.C.] : International Monetary Fund, ©2006.
Series:IMF working paper ; WP/06/88.
Subjects:
Foreign exchange rates > Mexico > Econometric models.
Prices > Mexico.
Foreign exchange rates > Developing countries > Econometric models.
Prices > Mexico > Econometric models.
Deflation (Finance) > Mexico > Econometric models.
Financial crises > Mexico.
Prices > Econometric models
Financial crises
Deflation (Finance) > Econometric models
Foreign exchange rates > Econometric models
Prices
Developing countries
Mexico
Online Access:Click for online access
Table of Contents:
  • Contents
  • I. INTRODUCTION
  • II. VARIANCE ANALYSIS OF THE PESO-DOLLAR REAL EXCHANGE RATE
  • III. SUDDEN STOPS AND NONTRADABLES-DRIVEN REAL EXCHANGE RATE VOLATILITY
  • IV. CONCLUSIONS
  • REFERENCES

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