In this paper a model that analyzes the interaction between changes in commodity export prices, money creation inflation and real exchange rates in developing countries is developed. According to the model, commodity export booms can result, through the accumulation of international reserves, in a higher rate of money creation and inflation. In turn, this higher inflation can generate an appreciation of the domestic currency that exceeds what real...
Vea más
INFORMACIÓN
-
1985/01/31
-
Documento de trabajo departamental
-
CPD8515
-
1
-
1
-
2017/11/15
-
Disclosed
-
Commodity export prices and the real exchange rate in developing countries
-
real exchange rate