Research Seminar of International Laboratory for Macroeconomic Analysis: Irina Bogacheva «Sectoral Real Effective Exchange Rate and Industry Competitiveness in Russia»
Dear Colleagues,
International Laboratory for Macroeconomic Analysis invite everyone to join our research seminar on the 17th of December 2020 (Thursday) at 16:00.
Speaker: Irina Bogacheva, Bank of Russia
Title: Sectoral Real Effective Exchange Rate and Industry Competitiveness in Russia
Abstract:
One of the most popular measures for the economy’s cost competitiveness in foreign trade is the real exchange rate. The common approach to its calculation consists in adjusting the nom-inal exchange rates for the trade-weighted CPI-based inflation differentials between the do-mestic economy and its major trade partners. Although such approach is most often used for official statistics, the CPI-based real exchange rate does not accurately capture an economy’s competitiveness in foreign trade. The latter is explained by the fact that the CPI naturally con-siders price changes for both tradable and non-tradable goods. We aim at constructing a set of alternative indicators of REER that would more extensively account for the structure of the Russian economy and its foreign trade and, hence, provide more reliable estimates of changes in Russian economy's cost competitiveness over time. This is done by taking into an account the structure of the Russian economy combined with the specificities of production processes in industries that are extensively involved in foreign trade, as well as integration of Russian industries into global value chains. Against this background, we also show the importance of distinguishing between the output-based and cost-based real exchange rate concepts when addressing the country’s trade competitiveness issue
Location: Online in Zoom
Link: https://zoom.us/j/96055720501?pwd=NXVwY2pjRHN2a0k5UXJHWmY1aVdGQT09
ID: 960 5572 0501
Password: 801734
Working language: English, Russian.
Looking forward to see you.