We study the quarterly bilateral real exchange rate and the relative price of non-traded to traded goods for 1225 country pairs over 1980-2005. We show that the two variables are positively correlated
This paper uncovers a striking empirical regularity: the consumer price of a good relative to a different good within a country tends to be much less variable than the price of that good relative to a
Koreas real exchange rate has displayed a mild downward trend since the 1980s, with fluctuations of 20 percent around that trend. This pattern is surprising because the classic Harrod-Balassa-Samuelso
