A Prism into The PPP Puzzles : The Micro-Foundations of Big Mac Real Exchange Rates  

Oleh:

Parsley, David C. ; Shang-Jin, Wei

Jenis: Article from Journal - ilmiah internasional
Dalam koleksi: The Economic Journal (EBSCO) vol. 117 no. 523 (Oct. 2007), page 1336-1356.
Topik: FOUNDATIONS; exchange rates; miicro - foundations
Fulltext: 1336.pdf (210.68KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: EE28.26 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

We match Big Mac prices with prices of its ingredients as a unique prism to study real exchange rates (RERs). This approach has several advantages. First, the levels of the Big Mac RER can be measured meaningfully. Second, as the exact composition of a Big Mac is known, the contributions of its tradable and non - tradable components can be estimated relatively precisely. Third, the dynamics of the RER can be studied in a setting free of several biases inherent in CPI - based RERs. Finally, a large cross - country dimension allows us to overturn the Engel result on what drives RER s. In most economies, the exchange rate is the single most important relative price, one that potentially feeds back into a large range of transactions.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali