Thomas, Charles P.; Marquez, Jaime; Fahle, Sean - Federal Reserve Board (Board of Governors of the … - 2008
In this paper we construct a new measure of U.S. prices relative to those of its trading partners and use it to reexamine the behavior of U.S. net exports. Our measure differs from existing measures of the dollar's real effective exchange rate (REER) in that it explicitly incorporates both the...