tag:blogger.com,1999:blog-6837159629100463303.post4866165920437576165..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: Exchange rates and monetary policyJason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6837159629100463303.post-45739792885381138362016-07-08T09:08:34.569-07:002016-07-08T09:08:34.569-07:00Short run fluctuations do seem to follow the intui...Short run fluctuations do seem to follow the intuition, and the NGDP metric works best when inflation is low (which is also where this model is counterintuitive). More details were linked above ... Here is the relevant link:<br /><br />http://informationtransfereconomics.blogspot.com/2014/09/what-do-exchange-rates-measure.htmlJason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-20530202170297448442016-06-28T14:23:37.283-07:002016-06-28T14:23:37.283-07:00Seems a bit counterintuitive. Lower (relative) NGD...Seems a bit counterintuitive. Lower (relative) NGDP means lower (relative) aggregate demand. Lower aggregate demand means lower inflation. Shouldn't lower inflation lead to a strengthening of the local currency?<br /><br />Have you looked at the data for Japan over a longer time period? FRED has the exchange rate and nominal GDP figures as far as 1994, and the correlation between the two ratios seems insignificant over the prriod.Mhttps://www.blogger.com/profile/17351584119181245920noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-25369839871546764922015-06-11T18:19:55.041-07:002015-06-11T18:19:55.041-07:00Hello,
I did the comparison and the results are i...Hello,<br /><br />I did the comparison and the results are interesting, but the recent fall seems to be a result of markets over-reacting to the UK's QE back in 2009 and a slow drift back to "normal" values:<br /><br /><a href="http://informationtransfereconomics.blogspot.com/2015/06/exchange-rates-and-irrational-markets.html" rel="nofollow">http://informationtransfereconomics.blogspot.com/2015/06/exchange-rates-and-irrational-markets.html</a>Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-40005264634408355442015-06-11T16:09:06.782-07:002015-06-11T16:09:06.782-07:00Bloomberg says the EUR /GBP over the last 5 years ...Bloomberg says the EUR /GBP over the last 5 years was - 0.11%<br /><br />http://www.bloomberg.com/quote/EURGBP:CUR<br /><br /><br />So would you expect when you compare the EUR/GB GDP it is around -0.11% over the same time period ?<br /><br />Thanks<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-75428146712726013062015-06-11T15:43:19.123-07:002015-06-11T15:43:19.123-07:00Hi Jason
Very interesting can you do it with UK p...Hi Jason<br /><br />Very interesting can you do it with UK please<br /><br />ThanksAnonymousnoreply@blogger.com