Multilateral Exchange Rate Model oor Spaans
Multilateral Exchange Rate Model
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This paper gives a description of the current version of the Multilateral Exchange Rate Model (MERM), a model first presented in the November 1973 issue of Staff Papers.
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The index that uses weights calculated from the Fund's multilateral exchange rate model (MERM), in contrast to trade-weighted indices, is so constructed and is, therefore, preferable for analyzing effects of exchange rate movements on the trade balance.
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The purpose of this paper is to extend to primary producing countries the analysis developed in the Fund's multilateral exchange rate model (MERM) for industrial countries, that is, to estimate the impact of a given set of changes in exchange rates on a country's balance of trade after an adjustment period of two to three years.
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