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Exchange Rates and Local Labor Markets
Goldberg, Linda S.; Tracy, Joseph S. - 2000
We document the consequences of real exchange rate movements for the employment, hours, and hourly earnings of workers in manufacturing industries across individual states. Exchange rates have statistically significant wage and employment implications in these local labor markets. The importance...
Persistent link: https://www.econbiz.de/10014193865
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The Long-Run U.S./U.K. Real Exchange Rate
Engel, Charles M.; Kim, Chang-Jin - 2022
We investigate the behavior of the long-run U.S./U.K. real exchange rate from 1885 to 1995. Our long-run real exchange rate series is derived from an unobserved components model which divides the real exchange rate into permanent and transitory components. The transitory component is modeled as...
Persistent link: https://www.econbiz.de/10013324058
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Unbiased Estimation of the Half-Life to PPP Convergence in Panel Data
Choi, C. Y.; Mark, Nelson C.; Sul, Donggyu - 2021
deviations from panel data. They are the bias associated with inapproiate aggregation across heterogeneous coefficients, time … aggregation of commodity prices, and downward bias in estimation of dynamic lag coefficients. Each of these biases have been … annual panel data set of real exchange rates for 21 OECD countries from 1948 to 2002, our point estimate of the half-life is …
Persistent link: https://www.econbiz.de/10013220968
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Monetary Policy and the Predictability of Nominal Exchange Rates
Eichenbaum, Martin - 2017
This paper studies how the monetary policy regime affects the relative importance of nominal exchange rates and inflation rates in shaping the response of real exchange rates to shocks. We document two facts about inflation-targeting countries. First, the current real exchange rate predicts...
Persistent link: https://www.econbiz.de/10012963169
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Estimating Currency Misalignment Using the Penn Effect : It's Not as Simple as it Looks
Cheung, Yin-Wong - 2016
We investigate the strength of the Penn effect in the most recent version of the Penn World Tables (PWTs). We find that the earlier findings of a Penn effect are confirmed, but that there is some evidence for nonlinearity. Developed and developing countries display different types of nonlinear...
Persistent link: https://www.econbiz.de/10012984753
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Forecasting Exchange Rates and Relative Prices with the Hamburger Standard : Is What You Want What You Get with Mcparity?
Cumby, Robert E. - 2021
A decade ago the Economist began an annual survey of Big Mac prices as a guide to whether currencies are trading at the right exchange rates. This paper asks how well the hamburger standard has performed. Although average deviations from absolute Big Mac parity are large for several currencies,...
Persistent link: https://www.econbiz.de/10013220795
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A Primer on Real Effective Exchange Rates : Determinants, Overvaluation, Trade Flows and Competitive Devaluation
Chinn, Menzie David - 2021
Several alternative measures of "effective" exchange rates are discussed in the context of their theoretical underpinnings and actual construction. Focusing on contemporary indices and recently developed econometric methods, the empirical characteristics of these differing series are examined,...
Persistent link: https://www.econbiz.de/10013222072
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Purchasing Power Disparity During the Floating Rate Period : Exchange Rate Volatility, Trade Barriers and Other Culprits
Wei, Shang-Jin; Parsley, David C. - 2021
Using a panel of 12 tradable sectors in 91 OECD country pairs (14 countries), we study the deviations from the …
Persistent link: https://www.econbiz.de/10013235585
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Changing Monetary Policy Rules, Learning, and Real Exchange Rate Dynamics
Mark, Nelson C. - 2021
When central banks set nominal interest rates according to an interest rate reaction function, such as the Taylor rule, and the exchange rate is priced by uncovered interest parity, the real exchange rate is determined by expected inflation differentials and output gap differentials. In this...
Persistent link: https://www.econbiz.de/10013237961
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Before the Fall : Were East Asian Currencies Overvalued?
Chinn, Menzie David - 2021
-Watson cointegration test procedures. As of May 1997, the baht, ringgit and peso were overvalued according to this criterion. While the …
Persistent link: https://www.econbiz.de/10013211646