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Maxym Chaban
''Real variables and the real exchange rate: The importance of traded goods in the transmission mechanism''
( 2006, Vol. 6 No.1 )
I find that real variables affect the real exchange rate almost entirely through the relative price of traded goods. This finding casts doubt on the theoretical literature that postulates that real shocks propagate only through the relative price of nontraded goods.
JEL: F4 - Macroeconomic Aspects of International Trade and Finance: General
F3 - International Finance: General
Manuscript Received : Oct 07 2005 Manuscript Accepted : Jan 13 2006

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