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Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/217381
A General Equilibrium Model with Real Exchange Rate [WP]
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I first write a partial equilibrium model “á la Rogoff” where there are relative prices of non-tradable goods in terms of prices of tradables goods. I find that the behaviour of the real exchange rate shows structural breaks in the short term. Secondly, I explain that any change in the real exchange rate is transitory in the long run. I obtain a general equilibrium model after I add a utility function to the partial-equilibrium model. In the general equilibrium model, an increase occurring in consumption of tradables is going to keep the RER constant over the time
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TARIFFI, Leonardo. A General Equilibrium Model with Real Exchange Rate [WP]. UB Economics – Working Papers. 2024. Vol. E24/476. [consulted: 15 of June of 2026]. Available at: https://hdl.handle.net/2445/217381