Abstract:
The paper documents a robust and interesting relationship between the real domestic price of oil and real effective exchange rates for Germany, Japan and the United States. It also offers an explanation of why the real oil price captures exogenous terms-of-trade shocks, and why such shocks could be the most important factor determining real exchange rates in the long run. Copyright 1998 by Blackwell Publishing Ltd.
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Related works: Working Paper: Exchange Rates and Oil Prices (1995) This item may be available elsewhere in EconPapers: Search for items with the same title.