CSPAN3 Key Capitol Hill Hearings May 20, 2015
The policy rate and the tenyear korea Interest Rate correlation is almost zero. There is no pass through on investment. Then what about the Exchange Rate . We look at the Exchange Rate again. Exchange rate has only very minor impact. But if you look at this at the 90 confidence interval we have to reject it as not a hypothesis which means that Exchange Rate does not have an impact on the current account surplus. But then that said if we look at by region its different depending on who our trading partners is. In the United States where most of the trade is on the final product goods it does ha...