External Wealth, the Trade Balance, and the Real Exchange Rate

External Wealth, the Trade Balance, and the Real Exchange Rate
This paper examines the link between the net foreign asset position, the trade balance and the real exchange rate. In particular, it decomposes the impact of a country's net foreign asset position ("external wealth") on its long-run real exchange rate into two mechanisms: the relation between external wealth and the trade balance; and, holding... READ MORE...

Publication date: March 2002
ISBN 9781451847123
$15.00

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