Figure 1: Real worth of trade weighed United States dollar, against broad basket of currencies. Trade weights for items up until 2006M01, trade weights for services and goods.
And here is a time series from 1973, in inflation changed terms, of the US dollar.
The dollar has enhanced sharply with regard to the currencies of numerous industrialized countries and emerging markets to reach a 20-year high. In the past, lots of nations would have welcomed a strong dollar; undoubtedly, emerging market nations like China often intervened in foreign exchange markets in the hopes of deteriorating the value of their currencies to acquire trade advantage.
Heres the graph from the memo:.
From the memo:.
This entry was posted on October 26, 2022 by Menzie Chinn.
