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Balance of Payments: Current Account Data Is For 1998
Balance of Payments: Current Account Data Is For 1998
Balance of Payments: Current Account Data Is For 1998
• PPP does not fit data well–there are many other factors
that influence exchange rates
• Problem measuring inflation rates–for nontraded goods
there is no commodity arbitrage
• Differential pricing by MNEs--they increase prices in
inelastic D countries and lower in elastic D countries
(depending on dumping laws)
• Restrictions on movements of goods--transportation
costs, tariffs, quotas
Germany: 12-9-99, DM/$ = 1.9159
Thailand
12-9-99, Bhat/$ = 38.625 Fixed
Indonesia: 12-9-99, Rupiah/$ = 7225
Malaysia: 12-9-99, Ringgit/$ = 3.8
South Korea: 12-9-99, Won/$ = 1130
Mexico: 12-9-99, Peso/$ = 9.435
Venezuela: 12-9-99, Bolivar/$ = 642.4
India: 12-9-99, Rupee/$ = 43.425