To What Extent Does Productivity Drive the Dollar?
Graduate Institute of International and Development Studies (HEI)
Swiss National Bank
Columbia University, Graduate School of Arts and Sciences, Department of Economics
Current Issues in Economics and Finance, Vol. 7. No. 8, August 2001
The continuing strength of the dollar has fueled interest in the relationship between productivity and exchange rates. An analysis of the link between the dollar's movements and productivity developments in the United States, Japan, and the euro area suggests that productivity can account for much of the change in the external value of the dollar over the past three decades.
Number of Pages in PDF File: 6
Keywords: productivity, exchange rate
JEL Classification: F31, F41
Date posted: April 26, 2005