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- W1569583025 abstract "Using a dynamic model of an open monetary economy, this paper examines the effects of tourism-related anticipated shocks on goods prices and foreign exchange reserves. Foreign tourists consume mainly non-traded goods in holiday destinations, converting them into exportable goods. This gives rise to a tourism terms-of-trade effect that affects the accumulation of foreign exchange. Announcements of anticipated events bring tourist visits forward, resulting in an initial under-adjustment or an over-adjustment in the prices of the non-traded goods when the tourism terms-of-trade effect is positive or negative. This leads to an increase or a decrease in foreign reserves in the long run." @default.
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- W1569583025 date "2012-08-01" @default.
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- W1569583025 title "PRICE DYNAMICS, FOREIGN EXCHANGE AND ANTICIPATED SHOCKS IN A TOURISM ECONOMY" @default.
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- W1569583025 doi "https://doi.org/10.1111/j.1468-0106.2012.00587.x" @default.
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