Does the Exchange Rate Really Affect Consumer Spending?
AbstractThis paper examines the extent to which changes in imports or exports of US consumer goods and services occurs in response to a change in the exchange rate, 1960-2000. The data used are taken from the Economic Report of the President, 2002. The findings indicate that an increase in the trade weighted exchange rate of about 1% is associated with an increase in import of consumer goods of approximately $1 bn the year after the change. The same level increase seems associated with a decline in consumer goods export of about $0.75 bn.
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Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Monetary Economics.
Volume (Year): VI (2008)
Issue (Month): 2 (May)
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Other versions of this item:
- John J. Heim, 2007. "Does the Exchange Rate Really Affect Consumer Spending?," Rensselaer Working Papers in Economics 0709, Rensselaer Polytechnic Institute, Department of Economics.
- F00 - International Economics - - General - - - General
- F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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