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Does the Exchange Rate Really Affect Consumer Spending?

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Author Info
John J. Heim () (Department of Economics, Rensselaer Polytechnic Institute, Troy, NY 12180-3590, USA)

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Abstract

This paper examines the extent to which changes in imports or exports of U.S. 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 one percent is associated with an increase in imports of consumer goods of approximately $1 billion dollars the year after the change. The same level increase seems associated with a decline in con-sumer goods exports of about $0.75 billion dollars.

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Paper provided by Rensselaer Polytechnic Institute, Department of Economics in its series Rensselaer Working Papers in Economics with number 0709.

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Date of creation: Jul 2007
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Handle: RePEc:rpi:rpiwpe:0709

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Find related papers by JEL classification:
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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This page was last updated on 2009-11-17.


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