P为消费者物价指数.pptVIP

There are two specific causes that explain why the long-run values of real exchange rates can change: A change in world relative demand for American products An increase (fall) in world relative demand for U.S. output causes a long-run real appreciation (depreciation) of the dollar against the euro. A change in relative output supply A relative expansion of U.S (European) output causes a long-run real depreciation (appreciation) of the dollar against the euro. Beyond Purchasing Power Parity: A General Model of Long-Run Exchange Rates Copyright ? 2003 Pearson Education, Inc. * Nominal and Real Exchange Rates in Long-Run Equilibrium Changes in national money supplies and demands give rise to the proportional long-run movements in nominal exchange rates and international price level ratios predicted by the relative PPP theory. From Equation (15-6), one can obtain the nominal dollar/euro exchange rate, which is the real dollar/euro exchange rate times the U.S.-Europe price level ratio: E $/€ = q$/€ x (PUS/PE) (15-7) Beyond Purchasing Power Parity: A General Model of Long-Run Exchange Rates Copyright ? 2003 Pearson Education, Inc. * Equation (15-7) implies that for a given real dollar/euro exchange rate, changes in money demand or supply in Europe or the U.S. affect the long-run nominal dollar/euro exchange rate as in the monetary approach. Changes in the long-run real exchange rate, however, also affect the long-run nominal exchange rate. Beyond Purchasing Power Parity: A General Model of Long-Run Exchange Rates Copyright ? 2003 Pearson Education, Inc. * The most important determinants of long-run swings in nominal exchange rates (assuming that all variables start out at their long-run levels): A shift in relative money supply levels A shift in relative money supply growth rates A change in relative output demand A change in relative output supply Beyond Purchasing Power Parity: A General Model of Long-Run Exchange Rates Copyright ? 2003 Pearson E