An Analysis of Recent Changes in the Australian Exchange Rate: Nominal and Real |
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| Authors: | G C Lim B R Parmenter |
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| Institution: | Institute of Applied Economic and Social Research University of Melbourne;*This article is based on a presentation given to the meeting of the Institute's Econometric Forecasting Project held on 30 May 1985. The authors acknowledge the assistance of Bee Fung and David Johnson. |
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| Abstract: | Recent movements in the Trade Weighted Indexes (MI) of Australia's nominal and real exchange rates are documented. The volatility of the nominal rate in the pre-float and post-float periods is examined. Decompositions are made of the most recent depreciations of the Twls into compenents due to depreciations against the United States dollar ($US) and other major currencies. The extent to which the recent changes can be understood as necessary to correct misalignment in the Australian balance of payments is investigated. |
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