European Parliament Library

New Rates from New Weights

This paper describes the result and the methodology of updating nominal and real effective exchange rate weights on the basis of trade data over 1999-2001. The underlying framework is an updated version of the IMF's current effective exchange rate calculation, which uses weights largely based on 1989-91 data. Since then, substantial changes have occurred in international trade relations, warranting a recalculation of effective exchange rate indices on the basis of new trade patterns. Updated weights show that the United States and developing countries (most notably China) have grown in their importance in global trade, while Japan and the European Union have declined, with substantial implications for the path of the dollar and exchange rate effects of emerging market crises since 1995
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. NOW AND THEN""; ""III. DECONSTRUCTING THE WEIGHTS""; ""IV. RECONSTRUCTING THE EFFECTIVE EXCHANGE RATES""; ""V. CONCLUSIONS""; ""Annex 1. Data""; ""Annex 2. Formula for Weights""; ""Annex 3. REER Algebra""; ""Annex 4. Expanding the Calculation of Weights""; ""REFERENCES""
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (55 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU
  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR