Real Exchange Rates and Commodity Prices in Neoclassical Model.

This paper presents a neoclassical model that explains the observed empirical relationship between government spending and world commodity supplies and the real exchange rate and real commodity prices. It is shown that fiscal expansion and increasing world commodity supplies simultaneously lead to a...

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Bibliografiske detaljer
Institution som forfatter: International Monetary Fund
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1988.
Serier:IMF Working Papers; Working Paper ; No. 1988/055
Online adgang:Full text available on IMF
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245 1 0 |a Real Exchange Rates and Commodity Prices in Neoclassical Model. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1988. 
300 |a 1 online resource (46 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper presents a neoclassical model that explains the observed empirical relationship between government spending and world commodity supplies and the real exchange rate and real commodity prices. It is shown that fiscal expansion and increasing world commodity supplies simultaneously lead to an appreciation of the real exchange rate and a decline in relative commodity prices. This structural model is estimated and its forecasting performance is compared to a variety of models. We find that theory and structure help in predicting commodity prices, although not the exchange rate, and that predictive ability increases as the forecast horizon is lengthened. MASTER FILES ROOM C-130 001. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1988/055 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1988/055/001.1988.issue-055-en.xml  |z IMF e-Library