Research Discussion Paper – RDP 9201 The Impact of Real and Nominal Shocks on Australian Real Exchange Rates

Contents

• Introduction
• Real Exchange Rates and Productivity Growth
• Real Exchange Rate Dynamics in Reslionse to Real and Nominal Shocks: Theory and Identification
• Results
• Conclusions and Summary
• Appendix
• References

I am grateful to Rudiger Dornbusch, Danny Quah, Federico Sturzenegger and Jeff Wooldridge for helpful discussions. The views expressed herein are those of the author and do not necessarily reflect those of the Reserve Bank of Australia.