A country with 25% of the economy producing tradeables experiences a 10% increase in the productivity of

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A country with 25% of the economy producing tradeables experiences a 10% increase in the productivity of tradeables. What impact might you expect this to have on its real exchange rate?

More generally what predictions does Balassa Samuelson make about the exchange rates of developing and fast-growing economies?

Posted Date: May 21, 2024 12:04 AM

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A country with 25% of the economy producing tradeables experiences a 10% increase in the productivity of

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