Monetary Regimes and Real Exchange Rates: Long-Run Evidence at the Product Level

Jason Kim (), Marco Mello () and Cosimo Petracchi ()
Additional contact information
Jason Kim: Brown University
Marco Mello: University of Aberdeen

No 579, CEIS Research Paper from Tor Vergata University, CEIS

Abstract: Compiling a novel dataset of prices for products sold in sixteen European countries starting in 1972, we establish that monetary-regime breaks, from peg to floating regimes, increase not only the volatility of nominal exchange rates, but also the volatility of product-level real exchange rates. Our result holds for any type of products—tradables versus nontradables—although the volatility of the real exchange rates of tradables responds less to breaks than the volatility of the real exchange rates of nontradables. Overall, the law of one price is less likely to hold under floating regimes for both tradables and nontradables

Pages: 24 pages
Date: 2024-06-19, Revised 2024-06-19
New Economics Papers: this item is included in nep-mon and nep-opm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ceistorvergata.it/RePEc/rpaper/RP579.pdf Main text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rtv:ceisrp:579

Ordering information: This working paper can be ordered from
CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
https://ceistorvergata.it

Access Statistics for this paper

More papers in CEIS Research Paper from Tor Vergata University, CEIS CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma. Contact information at EDIRC.
Bibliographic data for series maintained by Barbara Piazzi ().