How Far Has the Dollar Fallen?

Details

Serval ID
serval:BIB_FABF250D29B7
Type
Article: article from journal or magazin.
Collection
Publications
Title
How Far Has the Dollar Fallen?
Journal
Business Economics
Author(s)
Feldstein M., Bacchetta P.
ISSN
0007-666X
Publication state
Published
Issued date
1987
Peer-reviewed
Oui
Volume
22
Number
4
Pages
35-39
Language
english
Abstract
The present paper introduces a new index of the real value of the dollar relative to eighty other currencies. The individual exchange rates are combined with weights that reflect the recent (1984) multilateral pattern of trade. This new index confirms that the dollar rose very sharply between January 1980 and February 1985 and that about three-fourths of that appreciation was reversed by May 1987. This observation is true for both our multilateral and bilateral real indices. The analysis also shows that any index that fails to adjust for differences in inflation rates will give a very misleading impression of the dollar's evolution in the 1980s.
Create date
05/05/2017 14:55
Last modification date
20/08/2019 16:26
Usage data