Accounting for the stability of the UK terms of trade

Conall Mac Coille (), Karen Mayhew () and Kenny Turnbull ()
Additional contact information
Conall Mac Coille: Bank of England, Postal: Threadneedle Street, London, EC2R 8AH
Karen Mayhew: Bank of England, Postal: Threadneedle Street, London, EC2R 8AH
Kenny Turnbull: Bank of England, Postal: Threadneedle Street, London, EC2R 8AH

Bank of England Quarterly Bulletin, 2009, vol. 49, issue 4, 286-292

Abstract: Since the middle of 2007, the sterling effective exchange rate has depreciated significantly. Over the same period the UK terms of trade — the price of the United Kingdom’s exports relative to imports — have remained broadly unchanged. Movements in the exchange rate can affect the price of exports relative to imports. But the timing, size and even direction of the impact on the terms of trade will depend on how companies respond to the movement in the exchange rate. This article considers the factors that determine how the terms of trade move in response to an exchange rate depreciation, and investigates what lies behind the stability of the UK terms of trade since 2007.

Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.bankofengland.co.uk/-/media/boe/files/ ... 28C01591828229589241 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:qbullt:0010

Access Statistics for this article

Bank of England Quarterly Bulletin is currently edited by Lindsey Fowler

More articles in Bank of England Quarterly Bulletin from Bank of England Publications Group Bank of England Threadneedle Street London EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Publications Group ().