Systematic Movements in Real Exchange Rates in the G-5 : Evidence on theIntegration of Internal and External Markets

Author / Creator

Marston, Richard C

Available as

Online

Summary

Abstract: Many recent studies have documented the random behavior of. Abstract: real exchange rates. This paper shows that real exchange rates. Abstract: defined for different sectors of an economy...

Abstract: Many recent studies have documented the random behavior of.

Abstract: real exchange rates. This paper shows that real exchange rates.

Abstract: defined for different sectors of an economy move closely together.

Abstract: with one another even though each of the sectoral real exchange.

Abstract: rates taken alone has a large random component. The sectoral.

Abstract: real exchange rates are tied together by internal price links due.

Abstract: to factor mobility within each national economy. Any differences.

Abstract: between real exchange rates which develop, moreover, can be.

Abstract: explained almost entirely by productivity differentials, at least.

Abstract: in the long run. This paper contrasts the strong ties which bind.

Abstract: together prices from different sectors internally with ties that.

Abstract: bind the prices of goods from the same sector internationally.

Abstract: Prices are shown to be much more highly correlated internally.

Abstract: than externally because flexible exchange rates disrupt normal.

Abstract: pricing relationships between goods from different countries.

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