This paper examines the relevance of the Balassa-Samuelson productivity-bias hypothesis for explaining long-run permanent shocks in the real exchange rates. The sample consists of yearly data on real ...

What Are Currency Depreciation and Appreciation? In the foreign exchange market, currency depreciation occurs when the value of one currency falls compared to the value of another currency. On the ...

Interest rates play a critical role in shaping the values of different currencies. Central banks worldwide utilize interest rates as a monetary policy tool to manage their economies, making it ...

Exchange rates play a crucial role in the global economy, influencing trade, investment, and economic stability. Understanding the various measurements and regimes of exchange rates is essential for ...

The U.S. dollar has seen some remarkable swings against major currencies recently. For example, over most of 2005, it gained nearly 18% against the yen and 13% against the euro, while between March ...

This paper estimates, for the first time, the exchange rate elasticity of bilateral trade in services, providing indirect evidence of both producer currency pricing and dominant currency pricing in ...

The Economic Issues series was inaugurated in September 1996. Its aim is to make some of the economic research being produced in the International Monetary Fund on topical issues accessible to a broad ...

Understanding how to calculate an exchange rate is essential for anyone dealing with foreign currencies, whether you're traveling, investing, or conducting international business. Exchange rates ...

How often are exchange rates updated? Tracking exchange rates is a good idea for anyone who regularly sends money transfers. When you convert money from one currency to another, the bank or specialist ...