The effect of exchange rates on prices, wages, and profits
Subtitle: a case study of the United Kingdom in the 1990s
By: Joseph E. Gagnon.
Series: International finance discussion papers ;; no. 772; International finance discussion papers (Online) ;; no. 772.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Subjects: International business enterprises -- Great Britain -- Finance.; Foreign exchange rates -- Great Britain.
Description: "During the 1990s the United Kingdom experienced large and sudden exchange rate movements that had no apparent impact on overall consumer prices.  This paper shows that the stability of U.K. consumer prices was made possible in part by offsetting movements in the price-cost margins of foreign exporters and in part by offsetting price-cost margins in the U.K.  distribution sector.  At the same time, U.K.  manufacturers experienced margin swings in the opposite direction, largely due to their role as exporters.  Thus, sterling depreciation boosted the profits of U.K.  manufacturers and squeezed the profits of U.K.  distributors, while sterling appreciation had the opposite effects"--Federal Reserve Board web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 9/15/2004.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.