It takes the average reader and 41 minutes to read Does Productivity Growth Lead to Appreciation of the Real Exchange Rate? by Man-Keung Tang
Assuming a reading speed of 250 words per minute. Learn more
We revisit the time-honored link between productivity and the real exchange rate. Consistent with the traditional view, we find that higher labor productivity tends to lead to appreciation of the real exchange rate. Contrary to the traditional view, however, we find that the positive productivity effect is transmitted through the real exchange rate based on tradable prices, rather than through relative prices between tradables and nontradables. Moreover, higher total factor productivity is found, if anything, to lead to depreciation of the real exchange rate. These last two pieces of evidence provide support for the emerging view that limited tradability of goods and services provides scope for the strategic pricing decision, which has material consequences for the aggregate real exchange rate.
Does Productivity Growth Lead to Appreciation of the Real Exchange Rate? by Man-Keung Tang is 41 pages long, and a total of 10,291 words.
This makes it 14% the length of the average book. It also has 13% more words than the average book.
The average oral reading speed is 183 words per minute. This means it takes and 56 minutes to read Does Productivity Growth Lead to Appreciation of the Real Exchange Rate? aloud.
Does Productivity Growth Lead to Appreciation of the Real Exchange Rate? is suitable for students ages 8 and up.
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