Search: exchange rates

Sort by: Relevance Date
1–10 of 10 collapsed search results for exchange rates

RBA Glossary definition for exchange rates

exchange rates – The price of one currency expressed in terms of another currency. Any exchange rate can be quoted two ways, e.g. Australian dollars per US dollar (USD/AUD) or US dollars per Australian dollar (AUD/USD). The convention for the Australian dollar is that it is quoted as the foreign currency price of the Australian dollar. This is sometimes referred to as the 'Indirect' method of quoting.

Search Results

Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries

1 Nov 1990 RDP 9006
Jerome Fahrer
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/1990/9006.html

Results

1 Nov 1990 RDP 9006
Jerome Fahrer
This might happen, for instance, if the variance of nominal exchange rate innovations was underestimated. ... The effects of nominal rigidities on Austria's exchange rate are outweighed by this effect.
https://www.rba.gov.au/publications/rdp/1990/9006/results.html

Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries

1 Nov 1990 RDP 9006
Jerome Fahrer
Research Discussion Paper – RDP 9006 Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries.
https://www.rba.gov.au/publications/rdp/1990/9006/

References

1 Nov 1990 RDP 9006
Jerome Fahrer
Giovannini, Alberto and Julio J. Rotemberg (1986), “Exchange Rate Dynamics with Sticky Prices”, manuscript. ... Mussa, Michael (1986), “Nominal Exchange Rate Regimes and the Behavior of Real Exchange Rates”: Some Evidence and Implications”, in
https://www.rba.gov.au/publications/rdp/1990/9006/references.html

Estimation

1 Nov 1990 RDP 9006
Jerome Fahrer
RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries 4. ... First, it permits a test of the weak form of PPP, that percentage changes in the nominal exchange rate are equal to the difference
https://www.rba.gov.au/publications/rdp/1990/9006/estimation.html

Introduction

1 Nov 1990 RDP 9006
Jerome Fahrer
RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries 1. ... However, I find compelling evidence that nominal wage and price rigidities are a cause of volatile real exchange rates for all the
https://www.rba.gov.au/publications/rdp/1990/9006/introduction.html

Appendix: Data Definitions and Sources

1 Nov 1990 RDP 9006
Jerome Fahrer
RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries Appendix: Data Definitions and Sources. ... e: trade weighted nominal exchange rate. pf: trade weighted foreign GNP(GDP) deflator.
https://www.rba.gov.au/publications/rdp/1990/9006/appendix.html

Summary and Conclusions

1 Nov 1990 RDP 9006
Jerome Fahrer
This stickiness is associated with increased volatility in both nominal and real exchange rates. ... As the UK and German cases show, volatile real exchange rates could confound this identification.
https://www.rba.gov.au/publications/rdp/1990/9006/summary-and-conclusions.html

The Model

1 Nov 1990 RDP 9006
Jerome Fahrer
An appreciation of the real exchange rate is then required for intertemporal equilibrium. ... The shocks to the nominal exchange rate, v. et. , have no direct effect on p.
https://www.rba.gov.au/publications/rdp/1990/9006/model.html

Optimal Wage Contracts

1 Nov 1990 RDP 9006
Jerome Fahrer
RDP 9006: Wage Contracts, Sticky Prices and Exchange Rate Volatility: Evidence from Nine Industrial Countries 3. ... Recall that θ. O. decreases when the variance of nominal exchange rate innovations increases.
https://www.rba.gov.au/publications/rdp/1990/9006/optimal-wage-contracts.html