Does Productivity Growth Lead to Appreciation of the Real Exchange Rate?

Does Productivity Growth Lead to Appreciation of the Real Exchange Rate?
We revisit the time-honored link between productivity and the real exchange rate. Consistent with the traditional view, we find that higher labor productivity tends to lead to appreciation of the real exchange rate. Contrary to the traditional view, however, we find that the positive productivity effect is transmitted through the real exchange... READ MORE...

Publication date: July 2003
ISBN 9781451857252
$15.00

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