Real Exchange Rate and External Balance

How Important Are Price Deflators?

Real Exchange Rate and External Balance
This paper contrasts real exchange rate (RER) measures based on different deflators (CPI, GDP deflator, and ULC) and discusses potential implications for the link—or lack thereof—between RER and external balance. We begin by documenting patterns in the evolution of different measures of RERs, and confirm that the choice of... READ MORE...

Publication date: March 2017
ISBN 9781475590500
$18.00

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