Series: IMF Staff Papers
Author(s): International Monetary Fund. Research Dept.
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 1988
Keywords: terms of trade, exchange rate, real exchange, real exchange rate, relative price
An intertemporal optimizing model of a small open economy is used to analyze how terms of trade changes affect real exchange rates and the trade balance. Temporary current, (expected) future, and permanent changes...