The Volatility of the Relative Price of Commodities In Terms of Manufactures Across Exchange Regimes PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The Volatility of the Relative Price of Commodities In Terms of Manufactures Across Exchange Regimes PDF full book. Access full book title The Volatility of the Relative Price of Commodities In Terms of Manufactures Across Exchange Regimes by Ms.Hong Liang. Download full books in PDF and EPUB format.

The Volatility of the Relative Price of Commodities In Terms of Manufactures Across Exchange Regimes

The Volatility of the Relative Price of Commodities In Terms of Manufactures Across Exchange Regimes PDF Author: Ms.Hong Liang
Publisher: International Monetary Fund
ISBN: 1451980639
Category : Business & Economics
Languages : en
Pages : 22

Get Book

Book Description
This paper investigates the relationship between the nominal exchange rate regime and the volatility of relative commodity prices. The analysis shows that the relationship depends upon both the market structure and the economic agent’s perception about future exchange rate movements. When the markets for manufactured goods are less competitive than the markets for primary commodities, the volatility of relative commodity prices rises when exchange rate uncertainty increases. If demand for manufactured goods is intertemporally dependent, even a small increase in exchange rate uncertainty can result in potentially large costs in terms of increased relative commodity price instability.