Does the Exchange Rate Really Affect Consumer Spending?
This 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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Volume (Year): VI (2008)
Issue (Month): 2 (May)
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