Currencies and Trade Weights
A review of 26 currencies with as many as 34 years of data accounting for 100% of the Federal Reserve’s trade weights confirms income elasticities, trade agreements, economic integration and the terms in which goods and services are priced are all more important than currencies in affecting trade flows.
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Our Research — February 16, 2007
Currencies and Trade Weights A review of 26 currencies with as many as 34 years of data accounting for 100% of the Federal Reserve’s trade weights confirms income elasticities, trade agreements, economic integration and the terms in which goods and services are priced are all more important than currencies in affecting trade flows.