New Rates from New Weights
By Tamim A. Bayoumi, Jaewoo Lee, S. Jayanthi. Social Science Research Network, 2006
117 citations recorded by the source corpus.
This paper describes the result and the methodology of updating the IMF's nominal and real effective exchange rate weights on the basis of trade data over 1999-2001. The underlying framework is an updated version of the IMF's current effective exchange rate calculation, which uses weights largely based on 1989-91 data. Since then, substantial changes have occurred in international trade relations, warranting a recalculation of effective exchange rate indices on the basis of new trade patterns. Updated weights show that the United States and developing countries (most notably China) have grown in their importance in global trade, while Japan and the European Union have declined, with substantial implications for the path of the dollar and exchange rate effects of emerging market crises since 1995.
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Citations in the corpus
- A Primer on Real Effective Exchange Rates: Determinants, Overvaluation, Trade Flows and Competitive Devaluation (2005, unknown): “See Bayoumi et al. (2005) for a discussion of how updated weights modify the interpretation of three recent currency events.”
- The New BIS Effective Exchange Rate Indices (2006, methodology): “An alternative trade-based approach which is similar in essence but different in the arithmetic is used by the IMF and the Bank of England (see, for example, Bayoumi et al (2005) and Lynch and Whitaker (2004)).”
- Are There Oil Currencies? The Real Exchange Rate of Oil Exporting Countries (2007, unknown): “6 Zanello and Desruelle (1997) and recently Bayoumi et al. (2005) from the IMF consider only trade in manufactures, non-oil primary commodities and tourism services.”