Front Matter
  • 1 0000000404811396 Monetary Fund

Front Matter Page

Research Department


  • I. Introduction

  • II. Variance Analysis of the Peso-Dollar Real Exchange Rate

  • III. Sudden Stops and Nontradables-Driven Real Exchange Rate Volatility

    • A. Equilibrium When the Credit Constraints Never Bind: Perfectly Smooth Consumption

    • B. The Economy with Binding Credit Constraints

    • C. Quantitative Implications: Balance-Sheet Effect Versus Fisherian-Deflation Effect

  • VI. Conclusions

  • Figures

  • 1. Fraction of Mexico’s Real Exchange Rate Variability Expalined by Tradables Goods Prices at Different Time Frequencies

  • 2. Equilibrium in the Nontradables Market with Fisherian Deflation

  • 3. Date-0 Effects of Changes in Liquidity Coefficient

  • 4. Date-0 Effects of Shocks to Tradables Endowment

  • 5. Date-0 Effects of Policy

  • References

Real Exchange Rate Volatility and the Price of Nontradables in Sudden-Stop-Prone Economies
Author: Mr. Enrique G. Mendoza