OECD Factbook 2008
Economic, Environmental and Social Statistics
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Effective exchange rates
A broad interpretation of international competitiveness would involve comparison of the success of different countries in raising productivity, fostering innovation and improving living standards. The two competitiveness indicators shown here have a narrower objective – namely to measure changes in a country’s price competitiveness in international markets based on changes in that country’s exchange rate and price level (either consumer goods prices or unit labour costs in manufacturing) relative to those of its competitors. In addition, we present indices of nominal effective exchange rates. This indicator reflects only variations in market exchange rates, which is just one of the factors that enter the calculation of the two competitiveness indicators mentioned above.
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