Explaining the exchange rate in the euro zone through non-tradable goods and the income effect

dc.contributor.authorTariffi, Leonardo
dc.date.accessioned2019-05-13T07:54:30Z
dc.date.available2019-05-13T07:54:30Z
dc.date.issued2019-02
dc.date.updated2019-05-13T07:54:31Z
dc.description.abstractThis paper shows those fundamental macroeconomics variables which explain the behaviour of the real exchange rate (RER) in the Euro Zone, with special emphasis in tariff rates. Diminishing tariffs on imports affect tradable and non-tradable sectors depending on substitution or income effects. When the substitution effect prevails, lower tariffs increase imports and the demand for foreign currency depreciates the euro. When the income effect is stronger, lower tariffs increase demand for goods in both tradable and non-tradable sectors. It boosts productivity and increases relative prices in the non-tradable sector.
dc.format.extent10 p.
dc.format.mimetypeapplication/pdf
dc.identifier.idgrec689975
dc.identifier.issn2230-9926
dc.identifier.urihttps://hdl.handle.net/2445/133009
dc.language.isoeng
dc.publisherInternational Journal of Development Research
dc.relation.isformatofReproducció del document publicat a: http://www.journalijdr.com/sites/default/files/issue-pdf/14849.pdf
dc.relation.ispartofInternational Journal of Development Research, 2019, vol. 9, num. 2, p. 25753-25762
dc.rightscc-by (c) Tariffi, Leonardo, 2019
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/es
dc.sourceArticles publicats en revistes (Economia)
dc.subject.classificationEquilibri (Economia)
dc.subject.classificationCanvi
dc.subject.classificationZona euro
dc.subject.classificationImpostos
dc.subject.otherEquilibrium (Economics)
dc.subject.otherExchange
dc.subject.otherEurozone
dc.subject.otherTaxation
dc.titleExplaining the exchange rate in the euro zone through non-tradable goods and the income effect
dc.typeinfo:eu-repo/semantics/article
dc.typeinfo:eu-repo/semantics/publishedVersion

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