14--ch15价格水平与长期汇率水平.pptVIP

CH15. Price Levels the Exchange Rate in the Long Run (此部分在英文书P387--) Introduction The model of long-run exchange rate behavior provides the framework that actors in asset markets use to forecast future exchange rates. Predictions about long-run movements in exchange rates are important even in the short run. In the long run, national price levels play a key role in determining both interest rates and the relative prices at which countries’ products are traded. The theory of purchasing power parity (PPP) explains movements in the exchange rate between two countries’ currencies by changes in t