Commodity Export Boom and the Real Exchange Rate: The Money-Inflation Link
AbstractThis paper analyzes the relation between exogenous changes in commodity export prices and the real exchange rate in a monetary economy. The traditional Dutch?Disease case is extended, and the monetary consequences of an export boom are explored. It is shown that commodity export booms can generate, in the short run, either an excess demand or an excess supply for money. In a monetary setting the short-run behavior of the real exchange rate can differ significantly from the more traditional Dutch-Disease case without money. The model is tested using data for Colombia.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 1741.
Date of creation: Oct 1985
Date of revision:
Publication status: published as Edwards, Sebastian. "Commodity Export Boom and the Real Exchange Rate: The Money-Inflation Link," Natural Resources and the Macroeconomy, eds. J. Peter Neeny and Sweder van Wijnbergen, Cambridge, MA: MIT Press, 1986.
Note: ITI IFM
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Neary, J Peter & van Wijnbergen, S, 1984. "Can an Oil Discovery Lead to a Recession? A Comment," Economic Journal, Royal Economic Society, vol. 94(374), pages 390-95, June.
- Maurice Obstfeld, 1984. "Capital Flows, the Current Account, and the Real Exchange Rate: Consequences of Liberalization and Stabilization," NBER Working Papers 1526, National Bureau of Economic Research, Inc.
- Edwards, Sebastian, 1983. "The Short-Run Relation between Growth and Inflation in Latin America: Comment," American Economic Review, American Economic Association, vol. 73(3), pages 477-82, June.
- Marcus Böhme & Clemens Breisinger & Rainer Schweickert & Manfred Wiebelt, 2010.
"Oil revenues for public investment in Africa: targeting urban or rural areas?,"
Kiel Working Papers
1623, Kiel Institute for the World Economy.
- Manfred Wiebelt & Rainer Schweickert & Clemens Breisinger & Marcus Böhme, 2011. "Oil revenues for public investment in Africa: targeting urban or rural areas?," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 147(4), pages 745-770, November.
- Fakhri Hasanov, 2010.
"The Impact of Real Oil Price on Real Effective Exchange Rate: The Case of Azerbaijan,"
Discussion Papers of DIW Berlin
1041, DIW Berlin, German Institute for Economic Research.
- Hasanov, Fakhri, 2010. "The impact of real oil price on real effective exchange rate: The case of Azerbaijan," MPRA Paper 33493, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.