Title: Inequality, the price of nontradables, and the real exchange rate
Description: Even though real exchange rate has an important impact on sustainable export and economic growth for small open economies, its impact on income distribution and transmission mechanism was never investigated. The paper shows that improved income distribution, through its impact on the price of nontradables, is associated with real exchange rate devaluation.
Subjects: Econometric models, Economic aspects of Equality, Economic development, Effect of devaluation of currency on, Equality, Income distribution, Poverty