| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5060242 | Economics Letters | 2012 | 4 Pages |
Abstract
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.
⺠With full producer currency pricing (PCP) the real exchange rate is not very volatile. ⺠This happens because of expenditure-switching. ⺠I investigate a simple way to get high real exchange rate volatility with full PCP.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Laura Povoledo,