Backus–Smith puzzle
id:
backus-smith-puzzle-256-13530042
title:
Backus–Smith puzzle
text:
In economics, the Backus–Smith puzzle or consumption – real-exchange-rate anomaly is the observation that the correlation between consumption and real exchange rates is zero or negative. This is contrary to economic theory which predicts that with full risk sharing, relative consumption should be perfectly correlated with the real exchange rate. Countries with relative low prices should receive a transfer to take advantage of cheap consumption. This anomaly was first documented by David K. Backu
brand slug:
wiki
category slug:
encyclopedia
description:
Paradox in economics
original url:
https://en.wikipedia.org/wiki/Backus%E2%80%93Smith_puzzle
date created:
date modified:
2024-03-06T19:18:50Z
main entity:
{"identifier":"Q4839811","url":"https://www.wikidata.org/entity/Q4839811"}
image:
fields total:
13
integrity:
14