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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.

Suggested Citation

  • Robert A. Amano & Simon van Norden, 1995. "Exchange Rates and Oil Prices," International Finance 9509001, University Library of Munich, Germany.
  • 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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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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