01687cas a2200253 a 4500 AALejournalIMF001893 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847123 1018-5941 BD-DhAAL BD-DhAAL Lane, Philip. External Wealth, the Trade Balance, and the Real Exchange Rate / Philip Lane, Gian Milesi-Ferretti. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (35 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 examines the link between the net foreign asset position, the trade balance and the real exchange rate. In particular, it decomposes the impact of a country's net foreign asset position ("external wealth") on its long-run real exchange rate into two mechanisms: the relation between external wealth and the trade balance; and, holding other determinants fixed, a relation between the trade balance and the real exchange rate. It also provides additional evidence that the relative price of nontradables is an important channel linking the trade balance and the real exchange rate. Mode of access: Internet Milesi-Ferretti, Gian. IMF Working Papers; Working Paper ; No. 2002/051 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/051/001.2002.issue-051-en.xml IMF e-Library