01785cas a2200253 a 4500 AALejournalIMF007731 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854602 1018-5941 BD-DhAAL BD-DhAAL Milesi-Ferretti, Gian. The Transfer Problem Revisited : Net Foreign Assets and Real Exchange Rates / Gian Milesi-Ferretti, Philip Lane. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (38 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 The relationship between international payments and the real exchange rate-the 'transfer problem'-is a classic question in international economics. We use new data on countries' net external positions together with real exchange rate data to shed light on this question. We present a model yielding testable implications on the long-run co-movements of real exchange rates, external positions, relative GDP and terms of trade, and cross-country and time-series evidence on the subject. Countries with net external liabilities are found to have more depreciated real exchange rates, with the main channel of transmission working through the relative price of nontraded goods. Mode of access: Internet Lane, Philip. IMF Working Papers; Working Paper ; No. 2000/123 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/123/001.2000.issue-123-en.xml IMF e-Library