Purchasing Power Parity (PPP) remains a cornerstone of international economics, positing that in the long run exchange rates should adjust so that identical goods and services cost the same across ...

Exchange rate pass‐through refers to the extent to which fluctuations in the nominal exchange rate affect domestic prices—both at the producer and consumer levels. This dynamic plays a pivotal role in ...

The Economic Issues series was inaugurated in September 1996. Its aim is to make some of the economic research being produced in the International Monetary Fund on topical issues accessible to a broad ...

What is the value of a country’s goods against those of another country, a group of countries, or the rest of the world, at the prevailing exchange rate? How does one determine whether a currency is ...