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Economists Nikhil Patel and Shang-Jin Wei propose a new method for calculating the real effective exchange rate that accounts for global value chains. They argue that standard calculations assume countries export only final goods, which misstates trade competitiveness.
The piece is an opinion article on methodology.
Better exchange-rate measurement can change how policymakers judge currency misalignment in trade talks. It has no immediate effect on feed commodity prices.
news.cgtn.comNikhil Patel, Shang-Jin WeiApr 18, 2019After 991 past macro events, USDCNY moved a median -0.0% over 5 sessions (49% higher; middle half -0.3% to +0.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
