01786cas a2200241 a 4500 AALejournalIMF007534 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451980639 1018-5941 BD-DhAAL BD-DhAAL Liang, Hong. The Volatility of the Relative Price of Commodities In Terms of Manufactures Across Exchange Regimes : A Theoretical Model / Hong Liang. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (21 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 investigates the relationship between the nominal exchange rate regime and the volatility of relative commodity prices. The analysis shows that the relationship depends upon both the market structure and the economic agent's perception about future exchange rate movements. When the markets for manufactured goods are less competitive than the markets for primary commodities, the volatility of relative commodity prices rises when exchange rate uncertainty increases. If demand for manufactured goods is intertemporally dependent, even a small increase in exchange rate uncertainty can result in potentially large costs in terms of increased relative commodity price instability. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/163 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/163/001.1998.issue-163-en.xml IMF e-Library