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- W2043607364 abstract "This article explores the relationship between the terms of trade and inflation. It shows, both analytically and empirically, that the exchange rate response to a change in the terms of trade is crucial to the inflation outcome. It demonstrates the existence of a ‘threshold’ exchange rate response. Our best estimate is that a rise in the terms of trade is inflationary if the associated rise in the real exchange rate is less than about 1/3–1/2 of the rise in the terms of trade. However, if appreciation of the real exchange rate is larger than this, the consequent fall in the domestic price of importables is large enough that the terms of trade rise reduces inflation, at least in the short run." @default.
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- W2043607364 date "1996-04-01" @default.
- W2043607364 modified "2023-09-23" @default.
- W2043607364 title "Are Terms of Trade Rises Inflationary?" @default.
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- W2043607364 doi "https://doi.org/10.1111/j.1467-8462.1996.tb00926.x" @default.
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