BIS paper offers improved real exchange rate calculation

Maersk container ship - copyright Maersk

Existing models for calculating the real effective exchange rate (Reer) fail to account fully for global value chains, according to a working paper published by the Bank for International Settlements on May 8.

Nikhil Patel, Zhi Wang and Shang-Jin Wei propose a model that captures global value chains and differences across sectors in their paper, Global value chains and effective exchange rates at the country-sector level.

Current models tend to assume that only final – not intermediate – goods

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: