Research Discussion Paper – RDP 2001-04 Measuring the Real Exchange Rate: Pitfalls and Practicalities

Contents

• Introduction
• Calculating a Real Exchange Rate Index
• Weighting Choices
• The Implications of Different Exchange Rate Indices
• Conclusion
• Appendix A: Data Sources
• References

This paper has benefited from helpful discussions with Mardi Dungey and RBA staff. I would like to thank Ellis Connolly, Chris Thompson, Stephen McCalman and Chris Stewart for their exceptionally careful data assistance. Any remaining errors are the responsibility of the author, not of the Reserve Bank. The views expressed in this paper are those of the author and do not necessarily reflect those of the Reserve Bank of Australia.