exchange rate

Still, the problem of global imbalances has at least as much to do with incentives as with exchange rates.

There do seem to be potential links between changes in exchange rates and changes in the savings and investment balance.

Countries shifted to a floating rate system in which international currency markets were, in principle, allowed to determine exchange rates.

THERE was a time when economics was widely seen as a graph-strewn study of exchange rates, gross domestic product and the like.

Thankfully, the Bank for International Settlements provides a useful corrective with its monthly index of trade-weighted exchange rates.

At any given point it is not clear whether the bank is monitoring inflation, exchange rates, financial stability or some other metric.

A US Treasury official said exchange rates would have to be part of any such rebalancing, however.

many others have been reluctant to let their exchange rates rise enough to make up for the dollar's decline.

By law it must report twice a year on which countries fiddle their exchange rates at the world's expense.

This extraordinary transformation was the result of a complex set of policies, with exchange rates having played only a minor role.

Setting budget exchange rates is often linked to the firm's sensitivities and benchmarking priorities.

Even John Maynard Keynes, the arch-slayer of the last remnants of commodity money, was an adamant supporter of fixed exchange rates.

Given the recent movements of exchange rates, it might be easy to dismiss this possibility.

Until credit starts flowing again and asset prices stop plunging around the world, he said exchange rates will remain volatile.

As the Times noted, "By his own description, Mr. Geithner's expertise is in matters of currency exchange rates and monetary policy. "

It is not just a consequence of exchange rates that have failed to keep pace with global economic development.

It has been one of the most influential theories about exchange rates in the age of globalisation and it may be about to go up in smoke.

PPP exchange rates are used for a number of purposes, most notably to compare the standard of living of two or more countries.

Once it was accepted that the markets could set exchange rates, there was no real need for capital controls.

According to what date on the Notes converted into recording currency exchange rates, and the other: You said the company's requirements?

according to which exchange rates should adjust to equalise the price of a basket of goods and services around the world.

Fast-growing nations like Thailand are trying to devalue their exchange rates to bolster their export-driven economies.

The PBOC must prevent the arbitrage of exchange rates between the onshore renminbi and offshore renminbi , he said .

The Bank of International Settlements publishes monthly estimates of the effective exchange rates of various countries.

Another consequence of a system of floating exchange rates was that capital controls were not strictly necessary.

Exchange rates should reflect the underlying strength of a country's economy, she said.

Margaret Thatcher, former UK prime minister, was right when she said that exchange rates were a matter for markets to decide.

It is now possible to get up-to-the-minute stock quotes or updated currency exchange rates on a mobile phone or palmtop.

This seemed like a foolproof system: There would be no exchange rates at all, so nobody could mess it up.

AMONG the many points of tension between the United States and China, perhaps the single greatest one concerns exchange rates.

The unrealistic levels at which exchange rates were pegged led to a strong black market in currency transactions.

Indeed, declines in interest rates, which also weakened countries' exchange rates, help explain why GDP did not decline even more sharply.

Its role, to which China has assented, includes policing exchange rates - a task it has all but abandoned.

Vivendi says games revenue was down, year over year, with some of that poor performance due to unfavorable exchange rates.

But while real exchange rates tend to move around, one would not normally expect extreme misalignments to be persistent.

But in a world of mainly flexible exchange rates, there was no pressing need for formal agreements.

One of the risks in transactions that international traders have to deal with is the untimely fluctuations in exchange rates.

Screensavers can provide you real-time statistics, information of any kind like currency exchange rates, or weather, or traffic, whatever.

But at current exchange rates, the IMF notes that China's GDP is only $6. 5 trillion or a little more than a third the size of the U.

Flexible exchange rates seem to perform better in the face of shifts in export demand.

I spent spring and summer, for instance, reviewing exchange rates, trying to find the best way to finance my studies.

In terms of currency exchange rates China is governed primarily by its own interests rather than 'global' (read: American) ones.

Growth prospects, rather than yield differentials, may be driving exchange rates at the moment.

And yet, measured at current exchange rates, the average American is about 10 times as wealthy as the average Chinese.

Over the past 25 years, in terms of GDP per head at current exchange rates, the French have dropped from seventh place in the world to 17th.

PPP signals where exchange rates should be heading in the long run, as China gets richer, but it says little about today's equilibrium rate.

The authors stress that their sophisticated approach was scarcely better than the simple one at predicting the direction of exchange rates.

Last weekend's meetings of the International Monetary Fund in Washington descended into a stand-off over exchange rates.

The euro may have abolished market-based nominal exchange rates but it has led to marked divergences in real exchange rates (see chart).

In fact, exchange rates have been more volatile than Friedman might have expected.

But while these two shifts are necessary to reduce global imbalances, they are not enough. For that, exchange rates must also adjust.

Another possibility is to allow the money in and let exchange rates appreciate.

Exchange rates are not the only things that are floating freely in currency markets these days.

Strauss-Kahn said there was a general problem with world exchange rates and added that no one currency could resolve the issue.

Those shifts will be accommodated much more readily and with less disruption to prices and output if exchange rates are more flexible.

Both the point card and the Q-coin have now become proxy currencies which have stable exchange rates to the RMB in online games.

Even at market exchange rates, the growth of China's gross domestic product is as big as that of the US, in normal years for both countries.

Another is the prodding to let exchange rates in emerging markets appreciate, to lower the prices of their imports and thus check inflation.

The Asians decided to choose competitive exchange rates, export-led growth and huge accumulations of foreign currency reserves.

Changes in exchange rates are given various names depending on the kind of exchange rate regime prevailing .

A system in which currencies have no fixed parities and exchange rates. Prices are determined by supply and demand in the free market.

China's economy is still less than a third the size of America's at market exchange-rates.

Climate is one of several disputes between the two top economies, along with trade and exchange rates.

The best answer to these problems is getting exchange rates back to where they ought to be.

A little over a decade ago, China was the world's seventh-largest economy at prevailing exchange rates.

If the world came together now and said let's do a deal on exchange rates, China would be more likely to participate.

In their meeting, Bush told Wen he favors "market determined exchange rates, " White House spokesman Scott McClellan said.

We found that monetary policy was more powerful with flexible exchange rates.

Sharp shifts in exchange rates in recent months have altered the relative cost of living in cities around the world.

A real shift by central banks away from the dollar would have big implications for financial markets beyond exchange rates.

If exchange rates today were the same as those in forward contracts, there would be an opportunity for riskless profit.

Their monetary independence is also constrained by governments' desire to hold down exchange rates.

Most of the time exchange rates do not adjust to offset the extra yield being targeted in carry trades.

But on balance, we see floating exchange rates as the safest solution for a wide range of countries.

To be sure, exchange rates matter, and there's no way of knowing how large the deficits would have become if China and Japan hadn't acted.

'There's certainly much more room for much of Asia to have more-flexible exchange rates and to have more strengthening, ' Mr. Singh said.

Its currency moves have had a decisive influence on exchange rates.

If exchange rates and a low cost of living are factored in, Chinese incomes may be equivalent to more than $6, 000.

But many states face another grim outcome: years of low growth caused by uncompetitive exchange rates and sluggish productivity.

Under the system of fixed exchange rates and a gold-anchored dollar, world trade boomed (albeit from a low, war-ravaged base).

Second, the company needs to reduce its exposure to fluctuating euro-dollar exchange rates.

Mr Goldstein says an appreciation of the renminbi might pull some other Asian exchange rates with it.

It had benefited from favourable foreign exchange rates and the popularity of new marques such as the Jaguar XJ.

Without free-floating exchange rates, countries lose one of their most powerful bulwarks against a downturn.

The big event has been elsewhere: the great mistake, Asian policymakers concluded, was not pegged, but overvalued, exchange rates.

As a founder member of the Group of Seven nations Japan is expected to respect the group's commitment to free-floating exchange rates.

Countries may battle each other for shares of that weak demand by managing exchange rates, subsidies or tariffs.

They agreed to try to let market forces drive currency exchange rates.

Any kind of sudden change in exchange rates would not be desirable.

The two methods are combined to forecast seven foreign exchange rates, and expected to have better performance.

The two methods are combined to forecast seven foreign exchange rates, and expected to have better performance.

Populist politics, poor fiscal management, a reliance on foreign-currency borrowing and fixed exchange rates were a magnet for trouble.

If exchange rates swing in a way that hurts Metallica's earnings, he buys derivative financial instruments to lock in a preferred rate.

She says it has been surprisingly accurate in tracking exchange rates in the long term.

That, coupled with artificially low exchange rates, means the region continues to send much of its large savings abroad .

But exchange rates can overshoot, with consequences for the competitiveness of a country's exports.

If exchange rates were to drop further, household defaults could rise dramatically.

That's good. But my editor makes the point that my post on the subject takes a decidedly bilateral view of real exchange rates.

In his speech, Mr King warned that tensions over exchange rates were hampering the necessary rebalancing of the global economy.

EU-Chinese relations are perceived primarily in terms of trade, investment and exchange rates.

It may be that the logic of rebalancing is so powerful that exchange rates will adjust no matter what the Fed does.

It is true that policymakers persistently strive to shift exchange rates as means of economic "rebalancing" .

On exchange rates and the current account deficit, the meeting opened up possibilities without achieving concrete decisions.

Most of the dollars and euros still available can be purchased only on the black market at elevated exchange rates, people here say.

But although managing exchange rates is an easy way of giving domestic exporters an edge, it is self-defeating from a global perspective.

This exacerbates the current-account positions of the receiving countries and puts downward pressure on developing-country exchange rates.

FAIL to see the connection between excessive capital flows and the current system of flexible exchange rates.

The currency worries led finance minister Yoshihiko Noda to say last week that he is closely monitoring foreign exchange rates.

The International Monetary Fund has used this approach extensively in its own work on exchange rates.

You don't need to understand exchange rates and trade wars to grasp the economic change that has come to Saginaw, Mich.

Perhaps not surprisingly, many American economists argue for the American system of floating exchange rates determined by market forces.

Debate over exchange rates is likely to figure prominently at the meeting later this week.

They range from exchange rates to Iran's nuclear programme, and indeed to co-operation in the event of a North Korean meltdown.

the company will avoid any loss due to the fall in exchange rates.

Moreover, even when the debt overhang is eliminated, the peripheral countries will not be competitive at their existing exchange rates.

The answers, including those from some of our deepest thinkers on exchange rates, were revealing.

They do this in part because governments do not want their exchange rates to soar suddenly, crippling exporters.

Exchange rates sometimes involved real money or property, in the form of dowries or bride prices, she noted.

As the Western countries have relaxed controls on financial markets, exchange rates, interest rates and stock price volatility.

"The key challenge is to enable exchange rates to perform their critical function in facilitating adjustment, " the senior official said.

The short-term effect is an appreciation of real exchange rates and soaring current account deficits in destination countries.

In slow-growing economies with overvalued real exchange rates, these spreads begin to be dangerous.

NEW YORK (CNNMoney. com) -- A Treasury report on foreign exchange rates has lawmakers in a tizzy about China's cheap currency.

A majority of monetary officials is still striving restore greater fixity to exchange rates.

It would also limit dislocations in exchange rates arising from divergent beliefs about countries' monetary policy paths.

This requires skill in predicting macroeconomic trends, including, crucially, those concerning exchange rates and interests rates.

The friction between Washington and Beijing over exchange rates is about to get a lot worse.

I would then argue that China's determination to thwart needed adjustment in exchange rates had become intolerable.

He then went on argue that persistently misaligned exchange rates create "genuine problems for free-trade apologetics. "

Many fret that the upward pressure on exchange rates from the surge in foreign capital will cause their currencies to appreciate too much.

Whether or not flexible exchange rates lead to too much inflation is an open question.

But a big change in US policy on international exchange rates and currency intervention could spark volatility in global financial markets.

While exchange rates fluctuate, inflation around the world advances at varying speeds.

It depends on shifting exchange rates and data reported in different forms by the two governments.

In economics, the term describes how major trading nations once used gold to set currency values and exchange rates.

Rising prices caused by increases in exchange rates directly triggered off the deterioration of purchasing power and slumping consumption.

The implication of this policy is clear: adjustments in real exchange rates should occur via falling US domestic prices.

The proximate reason is because foreign exchange rates have not been determined in a free market.

THE dollar's recent revival has made fewer currencies look dear against the Big Mac index, our lighthearted guide to exchange rates.

For the first time it is now contributing more to global GDP growth (measured at market exchange rates) than the United States is.

Countries, such as Mexico, that have more flexible exchange rates and are more committed to inflation targets have done better.

The eurozone, the UK, Canada and Australia among others believe that their exchange rates are already substantially overvalued.

The surplus savings were then invested abroad, exchange rates were artificially depressed, and exports substituted for domestic demand.

This change in exchange rates will affect the quantities and dollar prices of our exports and imports.

Exchange rates are now determined by other people's assessment of a country's economic well-being.

Exchange rates often provide useful warnings about emerging imbalances, but overconfidence and herd behaviour weakened the signal.

But exchange rates don't hold all keys to fixing global imbalances, as the experience of the Plaza Accord proved.

Compensation and benefits analysis, including analyzing the impact of international currency exchange rates.

According to a different measure, using purchasing power instead of current exchange rates, China had already overtaken Japan.

A critical tool for accelerating that shift is greater flexibility in exchange rates, including exchange rates that are market-driven.

The risk is that their response would be to try to manage their exchange rates to generate large trade surpluses and build up reserves.

macroeconomic policy and international policy coordination under floating exchange rates.

'Exchange rates should be as realistic as possible, ' German Chancellor Angela Merkel told reporters Tuesday.

They argue that in economies with managed exchange rates and fast-growing bank deposits, there is increased risk of a "double drain" .

The results have been quite mixed for the sign and causal direction between exchange rates and stock prices.

The outflows have dragged down the exchange rates of almost every emerging economy since the beginning of August (see chart 1).

However, most Asian currencies have overshot in their depreciation and recent signs suggested a modest recovery in their exchange rates.

France repeatedly pushed for governments in the euro area to have more say over things like exchange rates.

That panicked America's trading partners and spelled the end of the Bretton Woods regime of fixed exchange rates.

But there were already rising tensions between the European Union and China over trade issues and exchange rates.

The exchange rates used in this sample are fictitious and should not be used for actual financial transactions.

Before exchange rates were fixed with the creation of the euro in 1999, countries had the option of devaluing versus the Deutsche Mark.

The US hailed the decision as a sign that the IMF was finally heeding its call to get tough on exchange rates.

Meanwhile, international visitors can taken advantage of improved exchange rates on their trips.

Yet the delicate compromise they have established over exchange rates is at risk of breaking down.

FAIL to see the connection betweenexcessive capital flows and the current system of flexible exchange rates.

And America will only really be eclipsed when China's GDP outstrips it in plain dollar terms, converted at market exchange rates.

Other countries heavily manage their exchange rates, with varying mixes of capital mobility and monetary policy independence.

These flows are the big determinants of desirable realignments of exchange rates over time.

After adjusting for this, she finds that the Big Mac index performs better in tracking exchange rates.

These " tiger " economies had grown fast but had maintained fixed exchange rates , which encouraged external borrowing .

That was the path taken in the early 1970s, when the D-mark rose after the collapse of the Bretton Woods system of fixed exchange rates.

Leaving aside petro economies, the biggest are in countries pursuing export-led growth, often on the basis of undervalued exchange rates.

The G20's reflexive hostility to non-market determined exchange rates could be another casualty of the eurozone sovereign debt crisis.

Of course those with higher exports shares in GDP will have monetary conditions more sensitive to [foreign exchange] rates.

This average of the actual and the deflated exchanges rates is intended to smooth the impact of fluctuations in prices and exchange rates.

It indicates that the China's agricultural futures price index can affect to the CPI, interest rates, exchange rates and GDP.

Absolute purchasing power parity states that exchange rates should adjust to keep purchasing power constant across currencies.

Furthermore, exchange rates have only limited effects on import or export prices and, therefore, imports and exports themselves.

As a result, the adjustment in exchange rates has so far been largely transatlantic, rather than global.

She calls for more flexible exchange rates and independent monetary policies, comments that again seem directed at China without naming it.

Ships my sink or consignments be damaged int transit , exchange rates may alter , buyers default of governments suddenly impose an embargo.

A major wild card is foreign exchange rates, which have been working against Japanese producers for months.

Businesses engaged in these externally orientated economic activities want certainty in exchange rates.

In the early 1990s governments had to choose between defending their exchange rates and the health of their economies.

He has recently worked under Mr Rajan, but he is no particular authority on misaligned exchange rates or capital-flow reversals.

Budget-cutting, freer exchange rates and structural reform should therefore be priorities for member countries, the draft says.

Exchange rates for such currencies are likely to change almost constantly as quoted on financial markets, mainly by banks, around the world.

Stronger exchange rates would help shift growth away from exports and boost households' real spending power.

The stable RMB exchange rates served as an anchor to stabilize the regional financial markets.

The practice of multiple exchange rates in swap centres had been abolished.

The IMF also is looking at toughening its annual review of members' policies so they focus more forcefully on exchange rates.

Japan's economy fell behind China's at market exchange rates in the second quarter (it has been number three in PPP terms for some time).

issues of methods of payment , exchange rates as well as pricing terms and conditions will be explained and discussed.

Another interaction comes via capital inflows and consequent upward pressure on exchange-rates in emerging countries.

Flexible exchange rates offer some cushioning against foreign shifts but tend to magnify the disruption from shifts of domestic origin.

Monetary exchange rates must be considered.

The other issue is the current dispute over the link between monetary stimulus and exchange rates.

And U. S. investors with assets abroad see profits earned overseas goosed by exchange rates that go against the dollar.

This week it insisted that the Asia-Pacific Economic Co-operation forum strike out references to market exchange rates.

Her head is with Beijing in its dispute with Washington over exchange rates.

With flexible exchange rates, markets force countries to devalue, which reduces their current account deficits.

One area in which chamber members share interests with Chinese companies is foreign-exchange rates.

A change in exchange rates is, after all, a change in a price ratio between national moneys.

As with exchange rates, so with climate change: encounters between Washington and Beijing usually end in recriminations.

If the change took place over a long period, the impact on exchange rates "could be minimal" .

"They are now neck and neck, which means exchange rates are very important. It is a real change. "

Exchange rates may be in a country' s external trade balance.

Transactions in foreign currencies are translated at exchange rates ruling at the transaction dates.

As countries' relative productivity rises, their exchange rates should move closer to purchasing-power parity.

Raising interest rates, the usual cure, lures capital and brings higher exchange rates with unwelcome effects on exporters.

But that clause dated from the 1940s Bretton Woods system of fixed global exchange rates, which the IMF was set up to administer.

International resistance is likely to be minimal, in spite of the G20's commitment to market-determined exchange rates.

In addition, the central banks of free-floating currencies no longer had to raise interest rates to defend their exchange rates.

Moreover, the Group of Seven advanced economies, including Japan, has urged greater flexibility of exchange rates.

With floating exchange rates, countries can target whatever inflation rate they choose and currencies will adjust.

Promoting balanced global growth demands 'market-oriented exchange rates, ' the official said.

Many "insured" themselves through managing exchange rates and building huge currency reserves.

There are many times, however, when exchange rates do not matter that much.

Early skirmishes are beginning as Japan and Switzerland try to weaken their exchange rates.

Violent movements in exchange rates are causing additional headaches, says Andrew Balfour of Slaughter & May, a law firm.

Start with a simple point about exchange rates.

Exchange rates between key currencies could float in unmanaged fashion most of the time but with occasional co-ordinated intervention.

China ranks 100th in the world in terms of per-capita income, and accounts for 6% of the global economy at market-exchange rates.

Here, demand for US debt has increased as emerging markets try to keep their bilateral exchange rates steady.

Those businesses are moving to countries where expenses are even lower and foreign-exchange rates don't threaten to crimp exports.

Although such countries as China manage their exchange rates closely, they have difficulty running an independent monetary policy.

Vietnam's currency is consistently falling below the official exchange rates, creating a thriving black market for gold and dollars.

It does so directly, through favorable loans to businesses and favorable exchange rates to foreign buyers of Chinese goods.

Countries instead largely shirked the challenge, content to rely on export-led growth by holding down their exchange rates.

How fiscal policy works with flexible exchange rates is a little more complicated.

He favored flexible exchange rates, and would have lectured China against pegging its yuan to the dollar.

Excess volatility and disorderly movements in exchange rates are undesirable for economic growth.

Budget exchange rates provide firms with a reference exchange rate level (Madura, 1989).

However, there is no reason why a preference for managing exchange rates should imply the status quo remains.

PPP comparisons, which adjust for unrealistic exchange rates, tend to flatter the economies of poorer countries.

The international economy is due to "celebrate" the 40-year anniversary of the collapse of the Bretton Woods system of fixed-exchange rates.

The bill relies on the IMF's methods (it has three) to identify offending exchange rates.

The policy lesson is clear: the need for co-ordination among emerging economies on managing capital flows and exchange rates.

Misaligned exchange rates are more often than not a prelude to trade friction.

When you make your withdrawal, the amount you withdraw will be converted into the ATM's currency at very competitive exchange rates.

Currencies - automatic currency converter which uses local exchange rates.

Sharp declines in their exchange rates increased the burden of paying back debts -- measured in baht, rupiah and won.

Some investors said there could be some movement toward more flexible exchange rates in the longer term.

Many other emerging economies have allowed their exchange rates to rise against the dollar.

Changes in exchange rates will come to provoke no more comment than changes in the real price of an airline ticket.

International finance is concerned with exchange rates between the moneys of various countries.

When comparing the size of economies, economists mostly avoid using the standard currency exchange rates seen in bank windows.

now many in Asia, including India, South Korea, Vietnam and Thailand, are having to sell dollars to prop their exchange rates up.

Many economists prefer to measure GDP using current exchange rates (which put the emerging world's proportion closer to 30%).