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FACTOR PRICE HYPOTHESIS [1 record]

Record 1 2017-01-26

English

Subject field(s)
  • Economic Doctrines, Systems and Policies
  • Currency and Foreign Exchange
CONT

A second channel [through which exchange rates are believed to affect productivity] is the factor price hypothesis ... When the exchange rate appreciates, this should make the use of capital more attractive than labour in the production process since the exchange rate affects the cost of labour. Over time this would lead to an increase in the use of capital, a decrease in labour intensity, and an improvement in productivity.

French

Domaine(s)
  • Doctrines, systèmes et politiques économiques
  • Politique monétaire et marché des changes
CONT

La seconde façon [dont les taux de change modifient la productivité] est l'hypothèse des prix comme facteur [...] Lorsque le taux de change s'apprécie, l'utilisation des immobilisations devrait être plus attrayante que le recours à la main-d'œuvre dans la production, car le taux de change modifie le coût de l'équipement et des logiciels importés plus que le coût de la main-d'œuvre. Après quelques temps, cela devrait mener à une augmentation de l'utilisation des immobilisations, à une baisse des activités ayant un fort coefficient de main-d'œuvre et à une amélioration de la productivité.

Spanish

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