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Exchange-Rate Economics for the Resources Sector

  • Kenneth W Clements

    (UWA Business School, The University of Western Australia)

  • Yihui Lan

    ()

    (UWA Business School, The University of Western Australia)

  • John Roberts

    (UWA Business School, The University of Western Australia)

The paper provides an account of aspects of exchange-rate economics that are of particular relevance to the resources sector. The issues discussed include exchange-rate volatility and risk management practices used to deal with it, the role of productivity differences across countries, the impact of a booming resources sector on the country’s exchange rate and approaches to forecasting exchange rates. The discussion is organised around a simple stylised model that emphasises the quantity theory of money and purchasing power parity as a long-run link between prices and exchange rates.

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Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 07-13.

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Length: 38 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:uwa:wpaper:07-13
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