• Media type: E-Book; Report
  • Title: Real exchange rates and primary commodity prices: Mussa meets Backus-Smith
  • Contributor: Ayres, João [Author]; Hevia, Constantino [Author]; Nicolini, Juan Pablo [Author]
  • imprint: Washington, DC: Inter-American Development Bank (IDB), 2021
  • Language: English
  • DOI: https://doi.org/10.18235/0003838
  • Keywords: Backus-Smith puzzle ; F31 ; Mussa puzzle ; F41 ; Primary commodity prices
  • Origination:
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  • Description: 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.
  • Access State: Open Access