Is it Explained by the Terms of Trade or by Real Interest Differentials?

Since the float of the Australian dollar and the world-wide deregulation of financial markets, we find some evidence that the real exchange rate exhibits a ...

Australia's Real Exchange Rate–Is it Explained by the Terms of ...

We find weak evidence of a stable relationship between the Australian real exchange rate and the terms of trade from 1969 to 1990.

Australia's Real Exchange Rate – Is it Explained by the Term

The evidence for a stable relationship is clearest with long real interest differentials. After the float, we also find evidence that the terms of trade and ...

RDP 9108: Australia's Real Exchange Rate – Is it Explained by the ...

After the float, the evidence suggests that both the terms of trade and long real interest differentials contribute to a stable relationship with the real ...

Australia's Real Exchange Rate–Is it Explained by the Terms

We find weak evidence of a stable relationship between the Australian real exchange rate and the terms of trade from 1969 to 1990.

Australia's real exchange rate - Is it explained by the terms of trade ...

Changes in the real interest differential are therefore expected to have only a temporary impact on the real exchange rate. Interest-bearing assets of ...

Australia's real exchange rate - is it explained by the terms of trade ...

Australia's real exchange rate - is it explained by the terms of trade or by real interest differentials? -book.

The dollar and real interest rates a comment - ScienceDirect.com

Australia's Real Exchange Rate–Is it Explained by the Terms of Trade or by Real Interest Differentials? 1994, Economic Record. View full text. Copyright ...

Australia's Real Exchange Rate-Is it Explained by the Terms of ...

Note that the coefficient estimates on both the terms of trade and long real interest differentials are lower than the independent estimates given in Table 1.

Commercial policy, the terms of trade and the real exchange rate ...

We find that the greater the elasticity of the non-traded price level with respect to the price of importables, the larger is the real exchange rate effect of ...

5 Factors That Influence Exchange Rates - Investopedia

If the price of a country's exports rises by a greater rate than that of its imports, its terms of trade have favorably improved.8 Increasing terms of trade ...

Determinants of Real Exchange Rate in Papua New Guinea

They further established that, real interest rate differentials are quantitatively more important than the terms of trade in explaining the real exchange rate ...

The Terms of Trade, the Real Exchange Rate, and Economic ... - jstor

correlations between real exchange rates and real interest rate differentials at ... THE TERMS OF TRADE AND THE REAL TRADE BALANCE: SUMMARY STATISTICS*.

Real Interest Rate: Definition, Formula, and Example - Investopedia

Purchasing power is the value of a currency expressed in terms of the number of goods or services that one unit of money can buy. It is important because, all ...

What Do We (and Others) Mean by “The Terms of Trade”?

“Australia's Real Exchange Rate-Is it Explained by the. Terms of Trade or by Real Interest Differentials?” Economic Record 70(209), June, pp.

Real Exchange Rates: What Money Can Buy

Taking advantage of such price differentials is called arbitrage. ... To do this, economists usually measure the real exchange rate in terms of a broad basket of ...

The Terms of Trade, the Real Exchange Rate, and Economic ...

correlations between real exchange rates and real interest rate differentials at ... THE TERMS OF TRADE AND THE REAL TRADE BALANCE: SUMMARY ...

A Note on International Real Interest Rate Differentials

economy is by altering the real interest rate or the intertemporal terms of trade. In an open economy, a necessary condition for monetary policy to operate.

Interest Rates and Exchange Rates--What is the Relationship?

As such, the real exchange rate reflects the underlying terms of trade ... The exchange rate and real interest rate differential. 1224. Index. 160. Percent.

A Methodological Comparison of BEERs and Feers - WP/98/67

between real exchange rates and economic fundamentals, such as real interest differentials.2 ... real exchange rates can be explained in terms of economic ...