Affordable Access

Publisher Website

On the conversion of ruble trade flows into dollars

Authors
Journal
Journal of Comparative Economics
0147-5967
Publisher
Elsevier
Publication Date
Volume
11
Issue
4
Identifiers
DOI: 10.1016/0147-5967(87)90075-8

Abstract

Abstract A simple approach is developed for analyzing the possible bias involved in converting CMEA countries' statistics on transferable ruble (TR) trade into dollars. This bias is a function of the degree of price distortion in TR trade and whether the conversion is made “backward” using the TR/dollar rate set by the CMEA, or “forward” using the country's official cross rate between the TR and the dollar. Illustrative calculations of conversion bias for the European members of the CMEA for 1983 show considerable differences in “forward” conversion bias among some of these countries, given identical hypothetical price distortions in each country's TR trade.

There are no comments yet on this publication. Be the first to share your thoughts.