TY  - JOUR
AU  - Bacchetta,Philippe
AU  - Feldstein,Martin
TI  - How Far Has the Dollar Fallen?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2122
PY  - 1987
Y2  - December 1987
UR  - http://www.nber.org/papers/w2122
L1  - http://www.nber.org/papers/w2122.pdf
N1  - Author contact info:
Philippe Bacchetta
Faculty of Business and Economics
University of Lausanne
Extranef
CH-1015 Lausanne
Switzerland
E-Mail: philippe.bacchetta@unil.ch

Martin S. Feldstein
President Emeritus
NBER
1050 Massachusetts Avenue
Cambridge, MA  02138-5398
Tel: 617/868-3905
Fax: 617/868-7194
E-Mail: msfeldst@nber.org
M2  - featured in NBER digest on 1987-03-01
AB  - The present paper introduces a new index of the real value of the dollar relative to 80 other currencies. The individual exchange rates are combined with weights that reflect the recent (1984) multilateral pattern of trade. This new index confirms that the dollar rose very sharply between January 1980 and February 1985 and that about two-thirds of that appreciation was reversed by July 1986. This is true for both our multilateral and bilateral real indices. The analysis also shows that any index that fails to adjust for differences in inflation rates will give a very misleading impression of the dollar's evolution in the 1980s.
ER  -