Home  Journals  Finance and Credit  47(431) - 2010 December

Exchange rate as a factor of unequal exchange

Available online: 13 December 2010

Subject Heading: THE CURRENCY MARKET

JEL Classification: 

Accelerating polarization of the world economy on the level and quality of life in the modern era of globalization, development of financial mechanisms for international redistribution of national wealth led to a new wave of interest in the problem of equivalence of exchange. In this article, using statistical techniques the deviation of the currency exchange rate for U.S. dollar from PPP, its causes and impact of the foreign trade are analyzed. It was concluded that due to this deviation exports of developing countries and countries with economies in transition in developed countries more than twice the imports. The author proposes the measures to restore the equivalence of exchange on the mega-and macro-level.

Keywords: foreign trade, unequal exchange, exchange rate, purchasing power parity, genuine cost of imports, genuine trade balance

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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