The real exchange rate and quality improvements
Subtitle: an analysis of time-inconsistency in bank closure policies
By: Karen Dury and  Özlem Oomen
Contributors: Oomen, Özlem; Bank of England
Series: Working paper -- no. 320; Working paper (Bank of England : Online) -- no. 320.
Publisher: Bank of England
Published: 2007
Place of publication: London
Language: eng
Format: [electronic resource] :
Description: "This paper studies how the real exchange rate might respond to product innovation (improvements in  the quality of goods) as opposed to process innovation (increased efficiency in the production of goods).  We develop a two-country dynamic stochastic general equilibrium model, where quality improvements  affect both the demand and the supply side of the economy. We show that the real exchange rate  defined in terms of prices per quality unit (quality-adjusted prices) does not always move in the same  direction as that defined in terms of unit prices (quality-unadjusted prices), illustrating the importance of  measuring quality correctly."--Bank of England web site.
Notes: Title from PDF file as viewed on Oct. 22, 2007.

Includes bibliographical references.

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