We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Real exchange rates and the relative prices of non-traded and traded goods: an empirical analysis.
- Authors
Groen, Jan J. J.; Lombardelli, Clare
- Abstract
This article present information on real exchange rates and the relative prices of traded and non-traded goods. The analysis presented in the article examines the existence of a long-run relationship between bilateral real exchange rates in Great Britain and the corresponding relative prices of non-traded to traded goods. Consistent with the findings elsewhere in the literature, using cointegrated vector autoregressive models for these series, otherwise known as vector error correction models, one finds little support for the law of one price; there is only limited evidence for a cointegrating relationship in the dollar and euro bilateral rates.
- Subjects
UNITED Kingdom; FOREIGN exchange rates; FOREIGN exchange; INTERNATIONAL finance; PRICES; MATHEMATICAL models
- Publication
Bank of England Quarterly Bulletin, 2004, Vol 44, Issue 3, p324
- ISSN
0005-5166
- Publication type
Article