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The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations, Japan and the World Economy
Changes in the price of nontradable goods relative to tradable goods account for roughly 50 percent of the cyclical movements in real exchange rates.
Ariel Burstein, Martin S. Eichenbaum, Sergio Rebelo
Burstein, Ariel, Martin S. Eichenbaum, and Sergio Rebelo. 2006. The Importance of Nontradable Goods' Prices in Cyclical Real Exchange Rate Fluctuations. Japan and the World Economy. 18(3): 247-253.LINK
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