Different exchange rate levels and exports

Discussion in 'Economics' started by Pluralsight, Feb 17, 2018.

  1. I have been reading some analysis on how different exchange rate levels boost or hurt exports. Obviously in general weaker currency = more competitive exports. But it seems that analysts somehow determine more exactly the levels, for example this excerpt:

    For example, one analysis states USDCAD at 1.29 as likely accelerating current positive inflation and export trends for Canada, while levels below 1.18 hurting exports.

    Can I ask how is it that you measure which exchange rate levels are going to accelerate inflation and exports? Or even if there is some kind of percentage relationship (1% increase in the currency hurts exports by x% for example). Is it econometric models that you use to determine this level? Where would I start to get a better understanding?
    Last edited: Feb 17, 2018