Working Paper
Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith
Ayres, Joao Luiz; Hevia, Constantino; Nicolini, Juan Pablo (2021-09-24)
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.
Working Papers , Paper 781

Working Paper
Online Appendix for: Real Exchange Rates and Primary Commodity Prices: Mussa Meets Backus-Smith
Ayres, Joao Luiz; Hevia, Constantino; Nicolini, Juan Pablo (2021-09-24)
Working Papers , Paper 782