The Real Exchange Rate and Prices of Traded Goods in OECD Countries
Author: Holger Brauer
Publisher: Springer Science & Business Media
Published: 2003
Total Pages: 250
ISBN-13: 9783540004301
DOWNLOAD EBOOKRead and Download eBook Full
Author: Holger Brauer
Publisher: Springer Science & Business Media
Published: 2003
Total Pages: 250
ISBN-13: 9783540004301
DOWNLOAD EBOOKAuthor: Jose De Gregorio
Publisher:
Published: 1994
Total Pages: 32
ISBN-13:
DOWNLOAD EBOOKThe paper examines the effects of terms of trade movements and productivity differentials across sectors on the behavior of the real exchange rate. We develop a simple model of a small open economy producing exportable and nontradable goods and consuming importable and nontradable goods and present empirical evidence for a sample of fourteen OECD countries. The evidence broadly supports the predictions of the model, namely that faster productivity growth in the tradable relative to the nontradable sector and an improvement in the terms of trade induce a real appreciation.
Author: Mr.Gian Milesi-Ferretti
Publisher: International Monetary Fund
Published: 1994-02-01
Total Pages: 38
ISBN-13: 1451922515
DOWNLOAD EBOOKThis paper attempts to provide a perspective on real exchange rate developments following the inception of the EMS. The focus is on structural determinants of real exchange rates, notably the behavior of tradables and nontradable prices and productivity. It is found that changes in the relative price of tradable goods in terms of nontradables account for a sizable fraction of real exchange rate dynamics during the EMS period. Sectoral productivity growth differential help explain the behavior of the relative price of tradable goods, especially in the long run. There is also some evidence that the EMS has extended on relative price behavior.
Author: Matthew B. Canzoneri
Publisher:
Published: 1996
Total Pages: 56
ISBN-13:
DOWNLOAD EBOOKThe Balassa-Samuelson model, which explains real exchange rate movements in terms of sectoral productivities, rests on two components. First, for a class of technologies including Cobb-Douglas, the model implies that the relative price of nontraded goods in each country should reflect the relative productivity of labor in the traded and nontraded goods sectors. Second, the model assumes that purchasing power parity holds for traded goods in the long-run. We test each of these implications using data from a panel of OECD countries. Our results suggest that the first of these two fits the data quite well. In the long run, relative prices generally reflect relative labor productivities. The evidence on purchasing power parity in traded goods is considerably less favorable. When we look at US dollar exchange rates, PPP does not appear to hold for traded goods, even in the long run. On the other hand, when we look at DM exchange rates purchasing power parity appears to be a somewhat better characterization of traded goods prices.
Author: Charles Engel
Publisher:
Published: 1995
Total Pages: 76
ISBN-13:
DOWNLOAD EBOOKThis study measures the proportion of U.S. real exchange rate movements that can be accounted for by movements in the relative prices of non-traded goods. The decomposition is done at all possible horizons that the data allow -- from one month up to thirty years. The accounting is performed with five different measures of non-traded goods prices and real exchange rates, for exchange rates of the U.S. relative to a number of other high income countries in each case. The outcome is surprising -- relative prices of non-traded goods appear to account for essentially none of the movement of U.S. real exchange rates at any horizon. Only for one crude measure, which uses the aggregate producer price index as an index of traded goods prices, do non-traded goods prices seem to account for more than a tiny portion of real exchange rate changes. This pattern appears to be true even during fixed nominal exchange rate episodes. Special attention is paid to the U.S. real exchange rate with Japan. The possibility of mismeasurement of traded goods prices is explored.
Author: OECD
Publisher: OECD Publishing
Published: 2008-08-22
Total Pages: 162
ISBN-13: 9264043462
DOWNLOAD EBOOKA guide for constructing and using composite indicators for policy makers, academics, the media and other interested parties. In particular, this handbook is concerned with indicators which compare and rank country performance.
Author: Menzie David Chinn
Publisher: International Monetary Fund
Published: 1997-05-01
Total Pages: 33
ISBN-13: 1451962169
DOWNLOAD EBOOKWe investigate the long-run relationship between the real exchange rate, traded and nontraded productivity levels, and government spending for 14 OECD countries, using recently developed panel cointegration tests. The results indicate that under certain assumptions it is easier to detect cointegration in panel data than in the available time series; moreover, the rate of reversion to long-run equilibrium is estimated with greater precision. Using the model augmented by oil prices, we find that in 1991 (the last year productivity data are available) there is less overvaluation of the U.S. dollar than that implied by a naive version of purchasing power parity.
Author: Stefano Micossi
Publisher:
Published: 1994
Total Pages: 44
ISBN-13:
DOWNLOAD EBOOKAuthor: Nagwa Riad
Publisher: International Monetary Fund
Published: 2012-01-15
Total Pages: 87
ISBN-13: 1463973101
DOWNLOAD EBOOKChanging Patterns of Global Trade outlines the factors underlying important shifts in global trade that have occurred in recent decades. The emergence of global supply chains and their increasing role in trade patterns allowed emerging market economies to boost their inputs in high-technology exports and is associated with increased trade interconnectedness.The analysis points to one important trend taking place over the last decade: the emergence of China as a major systemically important trading hub, reflecting not only the size of trade but also the increase in number of its significant trading partners.
Author: Ronald MacDonald
Publisher: Springer Science & Business Media
Published: 1999-07-31
Total Pages: 364
ISBN-13: 9780792384243
DOWNLOAD EBOOKHow successful is PPP, and its extension in the monetary model, as a measure of the equilibrium exchange rate? What are the determinants and dynamics of equilibrium real exchange rates? How can misalignments be measured, and what are their causes? What are the effects of specific policies upon the equilibrium exchange rate? The answers to these questions are important to academic theorists, policymakers, international bankers and investment fund managers. This volume encompasses all of the competing views of equilibrium exchange rate determination, from PPP, through other reduced form models, to the macroeconomic balance approach. This volume is essentially empirical: what do we know about exchange rates? The different econometric and theoretical approaches taken by the various authors in this volume lead to mutually consistent conclusions. This consistency gives us confidence that significant progress has been made in understanding what are the fundamental determinants of exchange rates and what are the forces operating to bring them back in line with the fundamentals.