Search: appreciation
RBA Glossary definition for appreciation
appreciation – An increase in the value of an asset. In foreign-exchange terms, it is a relative increase in the value of one currency compared to another.
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The Model
1 Jul 1998
RDP
9806
e means appreciation), π is inflation, and ε, η, and ν are white-noise shocks. ... It captures the idea that a rise in the interest rate makes domestic assets more attractive, leading to an appreciation.
https://www.rba.gov.au/publications/rdp/1998/1998-06/model.html
Efficient Instrument Rules
1 Jul 1998
RDP
9806
For a given output path, an appreciation causes inflation to fall, but it will rise again by γe. ... Footnote. One measure of the overall effect of e on inflation is the effect through appreciation in one period plus the effect through the Phillips
https://www.rba.gov.au/publications/rdp/1998/1998-06/efficient-instrument-rules.html