Purpose of this study is to revise the real effective exchange rates (REER) indexes released by Central Bank of Turkey. Within this framework, number of countries included in computation of new indexes is increased from 19 to 36 and for the country weights; recent trade developments are aimed to...

The nominal effective exchange rate (EER) of a currency is an index of the tradeweighted average of its bilateral exchange rates vis-à-vis the currencies of selected trading partners, while the real EER is derived by adjusting the nominal index for relative prices or costs. The nominal EER...

This paper presents the results of a meta-regression analysis of empirical estimates of Renminbi misalignments. Seventeen articles and 130 observations dealing with empirical estimates of the misalignment of Chinese currency are collected. This meta-analysis shows that real exchange rate...

We collect data from 29 separate papers estimating the equilibrium level and possible undervaluation of the Chinese currency, the renminbi. These papers yield a total of 97 individual observations on misalignment, which we analyse with the help of meta-analysis. We find that the vast majority of...

This paper reports evidence that the aggregate profit of the U.S. manufacturing industry is affected by fluctuations in the real exchange rate of the dollar. Using quarterly data covering the 1975Q1-1993Q4 period, regression of the manufacturing profit on the exchange rate and other key...

The paper investigates the law of one price (LOP), using 84 Canada/U.S. manufacturing prices over 1961–1996.We find that while there is a long-run relationship between Canadian and U.S. prices, industries vary in terms of adherence to the LOP. In industries with higher degree of market...

The real effective exchange rate is an aggregation of several bilateral real exchange rates with respect to other countries. The aggregation is usually done under the assumption of constant elasticity of substitution (CES) between products from different countries. We investigate the validity of...

It is common for comparisons to be made of output growth and inflation across groups of countries, yet such comparisons can result in inconsistencies. We address two problems: (i) how to measure aggregate real output and inflation for groups of countries and (ii) how to construct measures of...

The expansion and diversification of international trade has meant, for many countries, that changes in the relationship between domestic and foreign prices have greatly increased importance. This article identifies the weaknesses of the terms of trade, the usual measure of price conditions in...

In this work we present a new framework for modelling portfolio dynamics and how to incorporate this information in the portfolio selection process. We define drivers for asset and portfolio dynamics, and their optimal selection. We introduce the new Commonality Principle, which gives a solution...