IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v1998y1998i5id247.html
   My bibliography  Save this article

Real Effective Exchange Rate: Problems of Construction

Author

Listed:
  • Aleš Čapek

Abstract

Real effective exchange rates belong among principal indicators of price competitiveness. There exist two main approaches to their calculation: one based on the comparison of foreign and domestic price levels, the other based on the comparison of development of domestic prices of tradables and nontradables. In this article different types of real effective exchange rates are calculated. The calculations show in general that the CZK had been appreciating in real terms during the analysed period. This result is achieved using various types of price and wage cost indexes as well as different weighting schemes. The calculations also show that the real effective exchange rate against the DEM is good approximation of the real effective exchange rate. The real effective exchange rate against the USD behaves quite differently and thus does not seem to be good analytical tool for measuring external price competitiveness of the Czech economy.

Suggested Citation

  • Aleš Čapek, 1998. "Real Effective Exchange Rate: Problems of Construction," Politická ekonomie, University of Economics, Prague, vol. 1998(5).
  • Handle: RePEc:prg:jnlpol:v:1998:y:1998:i:5:id:247
    as

    Download full text from publisher

    File URL: http://www.vse.cz/polek/247
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:1998:y:1998:i:5:id:247. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky). General contact details of provider: http://edirc.repec.org/data/uevsecz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.