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Exchange-rate economics for the resources sector

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  • Clements, Kenneth
  • Lan, Yihui
  • Roberts, John

Abstract

The paper provides an account of aspects of exchange-rate economics that are of particular relevance to the resources sector. The issues discussed include exchange-rate volatility and the risk management practices used to deal with it, the role of productivity differences across countries, and the impact of a booming resources sector on the country's exchange rate. The discussion is organized around a simple stylized model that emphasizes the quantity theory of money and purchasing power parity as a long-run link between prices and exchange rates.

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Article provided by Elsevier in its journal Resources Policy.

Volume (Year): 33 (2008)
Issue (Month): 2 (June)
Pages: 102-117

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Handle: RePEc:eee:jrpoli:v:33:y:2008:i:2:p:102-117

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Web page: http://www.elsevier.com/locate/inca/30467

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Cited by:
  1. Hart, Jason, 2010. "Revenue Funds Counteract The Determinants Of Dutch Disease: Lessons For Western Australia," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia, Australian Agricultural and Resource Economics Society 59084, Australian Agricultural and Resource Economics Society.
  2. João Sousa Andrade & António Portugal Duarte, 2013. "The Dutch Disease in the Portuguese Economy," GEMF Working Papers 2013-05, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Hassan Suleiman & Zahid Muhammad, 2011. "The real exchange rate of an oil exporting economy: Empirical evidence from Nigeria," FIW Working Paper series 072, FIW.

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