Real exchange rate measurements and determinants Real exchange rate is regarded as an important economic issue, which interacts with the economy growth of a country. ... It is worthwhile to analyze how it is measured and how it is determined in the real economic circumstances. ... In order to identify these determinants, different models were developed by using different economic fundamentals. ... In the following, we will mainly discuss the first two models on the basis of analysis of two real currencies. ... According to empirical analysis, there are four crucial fundamentals, which will b...

• Word Count: 2178
• Approx Pages: 9
• Grade Level: Undergraduate

However, the falling value of the dollar, taken in the context of the United State's trade deficit makes perfect sense, and follows the economic theory." ... Brad Delong, an economic historian at the University of California at Berkeley, keeps a interesting journal in his internet journal (blog). ... According to the Economists, if not for the American current account deficit habits, while plainly unsustainable, the world would have no positive economic growth. ... An in depth analysis of the trade deficit seems to be impossible on television, Kudlow and Kramer seemed to only mention t...

• Word Count: 1225
• Approx Pages: 5
• Has Bibliography
• Grade Level: Undergraduate

Based on the analysis and research has provided many reasons that countries are being dollarized properly are further concerning to regional, graphical, political, and structural variables[Tom99]. ... Most of the strictly affected countries in current crises cheapened and did not stabilize their exchange rate, but even countries with currency boards such as Hong Kong SAR and Argentina suffered fierce aggressive bothers that, however, the hardened successfully, solved them serious economic obstacles. ... Specifically, Argentina adopted the U.S dollars as it legal tender in the context of deep...

• Word Count: 3668
• Approx Pages: 15
• Has Bibliography
• Grade Level: Undergraduate