WAGNERBRAUN, M (1992) METHODS FOR EVALUATING A FUNDAMENTALLY DETERMINED RATE-OF-EXCHANGE - PURCHASING-POWER-PARITY-APPROACH VERSUS TRADE-BALANCE-APPROACH. JAHRBUCH FUR SOZIALWISSENSCHAFT, 43 (1). pp. 85-107. ISSN 0075-2770,
Full text not available from this repository.Abstract
As the long-term equilibrium exchange rate is of great importance in all international monetary systems of this century, concerning the latest discussion about the reform of the existing international monetary system it is essential to be capable of assessing the present level of this significant equilibrium exchange rate. The two most important methods, the purchasing-power-parity-approach as well as the trade-balance-approach have so far been contrary to one another. However, it has now been possible to interconnect the approaches of the most significant representatives of each method, this is to say the approach of Ronald McKinnon with that of John Williamson. This "third way" adopts central elements of both methods: It is based upon the multilateral purchasing power parity of each country against its most significant trade partners. Due to the fact that the long-term equilibrium exchange rate is not determined exclusively by output price ratios, other fundamentals like current account balances, long-term capital flows, differences in production efficency, trade restrictions etc. are taken into consideration by means of ad hoc modifications.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | PRICING BEHAVIOR; |
| Depositing User: | Dr. Gernot Deinzer |
| Last Modified: | 19 Oct 2022 08:44 |
| URI: | https://pred.uni-regensburg.de/id/eprint/54704 |
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