NSU Research Contributions
Title : Nominal and Real Effective Exchange Rates for Bangladesh: 1973:07–2008:12
Authors : Gour Goswami, Mohammad Sarker
| Journal Title: Journal of Economics and Behavioral Studies | Volume Number: 2 | Publication Year : 2011 | Issue Number: 6 |
| Index: indexed | Ranking: No Ranking | ISSN: 2220-6140 | Publisher Name: IFRND |
| Pages : 263-274 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Develop quality, sustainable infrastructure Promote inclusive and sustainable industrialization |
| Impact statement: The bilateral real exchange rate is used in examining the price of domestic goods in terms of the partner’s goods, and it is especially useful for bilateral m On the other hand, treal effective exchange rate serves as the price of domestic goods in terms of a basket of foreign goods and is especially useful for aggregate or multilateral modeling. The method of construction of both the bilateral and the multilateral or effective exchange rate depends on the definition of nominal bilateral exchange rate (direct or indirect), the method of averaging (arithmetic or geometric), and the calculation of trade weight (considering either the value of export or import or total trade). This paper uses both the arithmetic and the geometric mean as averaging technique and considers three kinds of trade weights, namely, export weights, import weights, and total trade weights in the construction of effective exchange rate indices. Using twenty-one major trading partners of Bangladesh, which covers about 80 percent of her total trade, we prepare a comprehensive database on nominal effective exchange rates, real effective exchange rates, trade policy bias index etc. both by using the fixed and the variable weight for the period 1973:07–2008:12 on a | Collaboration: Government | Keywords: Effective Exchange Rates, Nominal Effective Exchange Rates, Real Effective Exchange Rates, Bilateral Exchange Rates, Multilater |
