To What Extent Does Productivity Drive the Dollar?

Tille, Cédric; Stoffels, Nicolas; Gorbachev, Olga

doi:10.2139/ssrn.711362

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To What Extent Does Productivity Drive the Dollar?

6 Pages Posted: 26 Apr 2005

See all articles by Cédric Tille

Cédric Tille

Graduate Institute of International and Development Studies (HEI)

Olga Gorbachev

Columbia University, Graduate School of Arts and Sciences, Department of Economics

Date Written: August 2001

Abstract

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.

Keywords: productivity, exchange rate

JEL Classification: F31, F41

Suggested Citation: Suggested Citation

Tille, Cedric and Stoffels, Nicolas and Gorbachev, Olga, To What Extent Does Productivity Drive the Dollar? (August 2001). Available at SSRN: https://ssrn.com/abstract=711362 or http://dx.doi.org/10.2139/ssrn.711362