Price dynamics, foreign exchange and anticipated shocks in a tourism economy
Data(s) |
01/08/2012
|
---|---|
Resumo |
Using a dynamic model of an open monetary economy, this paper examines the effects of tourism-related anticipated shocks on goods prices and foreign exchange reserves. Foreign tourists consume mainly non-traded goods in holiday destinations, converting them into exportable goods. This gives rise to a tourism terms-of-trade effect that affects the accumulation of foreign exchange. Announcements of anticipated events bring tourist visits forward, resulting in an initial under-adjustment or an over-adjustment in the prices of the non-traded goods when the tourism terms-of-trade effect is positive or negative. This leads to an increase or a decrease in foreign reserves in the long run. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Wiley-Blackwell Publishing Asia |
Relação |
http://dro.deakin.edu.au/eserv/DU:30049334/chao-pricedynamics-2012.pdf http://dro.deakin.edu.au/eserv/DU:30049334/chao-pricedynamics-evidence-2012.pdf http://dx.doi.org/10.1111/j.1468-0106.2012.00587.x |
Palavras-Chave | #price dynamics #tourism #exports |
Tipo |
Journal Article |