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Exchange Rates and Oil Prices

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  • Robert A. Amano
  • Simon van Norden

Abstract

The authors document a robust and interesting relationship between the real domestic price of oil and real effective exchange rates for Germany, Japan and the United States. They explain why they think the real oil price captures exogenous terms-of-trade shocks and why such shocks could be the most important factor determining real exchange rates in the long run.

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Bibliographic Info

Paper provided by EconWPA in its series International Finance with number 9509001.

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Length: 28 pages
Date of creation: 22 Sep 1995
Date of revision:
Handle: RePEc:wpa:wuwpif:9509001

Note: 28 printed pages, compressed PostScript file. Other recent Bank of Canada working papers are listed on the last page of this report.
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