Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith*
Juan Pablo Nicolini (),
Constantino Hevia and
Joao Ayres
Department of Economics Working Papers from Universidad Torcuato Di Tella
Abstract:
We show that explicitly modeling primary commodities in an otherwise totally standard incomplete markets open economy model can go a long way in explaining the Mussa puzzle and the Backus-Smith puzzle, two of the main puzzles in the international economics literature.
Keywords: primary commodity prices; Mussa puzzle; Backus-Smith puzzle. (search for similar items in EconPapers)
JEL-codes: F31 F41 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2021-09
New Economics Papers: this item is included in nep-dge and nep-opm
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https://www.utdt.edu/download.php?fname=_164330628545295300.pdf (application/pdf)
Related works:
Working Paper: Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith (2021) 
Working Paper: Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith (2021) 
Working Paper: Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith (2021) 
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Persistent link: https://EconPapers.repec.org/RePEc:udt:wpecon:2021_04
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