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| Author: | Guerrieri, P. Milana, C. |
| Title: | New indicators of price competitiveness and effective exchange rates |
| Journal: | Weltwirtschaftliches Archiv
1993 : VOL. 129:4, p. 801-819 |
| Index terms: | EXCHANGE RATES PRICES COMPETITIVENESS |
| Language: | eng |
| Abstract: | The indicators presented here are based on recent developments of index number theory. These developments took place under the heading of "economic theory of index numbers" and were successfully extended to the so-called "descriptive index numbers." Vartia and Vartia (1984) proposed a new indicator of nominal effective exchange rate based on these developments. In this paper, their approach is extended to the indicators of international competitiveness or real effective exchange rate. The authors set out the methodology for constructing the new indicators and propose their breakdown both at the level of single foreign markets and each competitor country. |
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