The purpose of this paper is to assess the level of the real effective exchange rate in Australia and New Zealand.
Abstract
Purpose
The purpose of this paper is to assess the level of the real effective exchange rate in Australia and New Zealand.
Design/methodology/approach
The paper describes three empirical models commonly used to conduct exchange rate assessments and applies them to data for Australia and New Zealand.
Findings
The baseline results using data and medium‐term projections, available as of October 2008, suggest that the Australian and New Zealand dollar were broadly in line with fundamentals, but with a wide variation across models. A battery of sensitivity tests illustrates that altering the underlying assumptions can yield substantially different assessments. The results are particularly sensitive to the choice of assessment horizon, the set of economies included in the sample, medium‐term forecasts, and the exchange rate reference period.
Originality/value
The paper provides an assessment of the exchange rates in Australia and New Zealand.
Details
Keywords
It has often been said that a great part of the strength of Aslib lies in the fact that it brings together those whose experience has been gained in many widely differing fields…
Abstract
It has often been said that a great part of the strength of Aslib lies in the fact that it brings together those whose experience has been gained in many widely differing fields but who have a common interest in the means by which information may be collected and disseminated to the greatest advantage. Lists of its members have, therefore, a more than ordinary value since they present, in miniature, a cross‐section of institutions and individuals who share this special interest.
WHERE are we going? The aim is to double our standard of living in the next 25 years and, as Sir Alexander Fleck, K.B.E., Chairman of Imperial Chemical Industries Ltd., so aptly…
Abstract
WHERE are we going? The aim is to double our standard of living in the next 25 years and, as Sir Alexander Fleck, K.B.E., Chairman of Imperial Chemical Industries Ltd., so aptly staled recently, ‘The man who knows where he is going is the one who is most likely to arrive.’ One might venture to expand this statement by adding that he is still more likely to arrive if the cluttering debris of inefficient methods and movements are cleared away.