摘要：We examine the link between the net foreign asset position, the trade balance and the real
exchange rate. In particular, we decompose 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 fixed other determinants, a negative relation
between the trade balance and the real exchange rate. We also provide additional evidence that
the relative price of nontradables is an important channel linking the trade balance and the real
exchange rate.
关键词：Net foreign assets, trade balance, real exchange rate.
