01880cas a2200253 a 4500 AALejournalIMF001863 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451844535 1018-5941 BD-DhAAL BD-DhAAL Rogoff, Kenneth. Commodity Currencies and Empirical Exchange Rate Puzzles / Kenneth Rogoff, Yu-chin Chen. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper re-examines empirical exchange rate puzzles by focusing on three OECD economies (Australia, Canada, and New Zealand) where primary commodities constitute a significant share of their exports. For Australia and New Zealand especially, we find that the U.S. dollar price of their commodity exports (generally exogenous to these small economies) -has a strong and stable influence on their floating real rates, with the quantitative magnitude of the effects consistent with predictions of standard theoretical models. However, after controlling for commodity price shocks, there is still a PPP puzzle in the residual. Nevertheless, the results here are relevant to many developing country commodity exporters, as they liberalize their capital markets and move towards floating exchange rates. Mode of access: Internet Chen, Yu-chin. IMF Working Papers; Working Paper ; No. 2002/027 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/027/001.2002.issue-027-en.xml IMF e-Library