1. REAL EFFECTIVE EXCHANGE RATE ("REER") INDEX[1]

REER FC/$ t+1= [(P us, t+1/ P us, t) x (FC/$ n, t+1/ FC/$ n, t) / (P n, t+1/ P n, t ]W n, t

Where the variables are defined as follows:

• t = 2010 to 2022,
• Pus and P fc are the consumer prices indexes (CPIs) for each country in year t+1 or t;
• FC/ $ is the indirect quote of currency n per the $ in year t or year t+1, where t goes from 2010 to 2022, with the base year being 2010,
• n is the number of foreign countries,
• Wn is the export share of the U.S. to each country, and
• The sigma applies to each from 2010 through 2022, and the REER is calculated for the sample of countries for each year, from 2010 to 2022

THE WEIGHTED RATIOS ARE CREATED FOR EACH COUNTRY AND SUMMED UP TO CONSTITUTE THE INDEX FOR THE SPECIFIC YEAR. THE NEER INDEX MEASURES THE EVOLUTION OF THE $ AGAINST A BASKET OF THE US MAIN TRADING PARTNERS. THE MODEL SHOULD BE DERIVED FOR 2010 THROUGH 2022 AND YIELD AN INDEX FOR EACH YEAR. THE INDEX SHOULD BE CALCULATED ON A 1.00 BASIS OR A 100% BASIS, WHICH IS MORE COMMONLY DONE.

1. FOR INDIRECT QUOTES, FC/$, IF THE INDEX=100 IT IMPLIES THAT ON A WEIGHTED BASIS THE DOLLAR HAS NOT CHANGED; IF THE INDEX> 100 IT IMPLIES THAT THE $ APPRECIATED ON A REAL EFFECTIVE BASIS; AND IF REER<100, IT IMPLIES THAT THE $ DEPRECIATED.

1. COUNTRIES TO INCORPORATE IN THE ANALYSIS INCLUDE THE SAME COUNTRIES LISTED UNDER THE NEER ABOVE.

1. U.S. EXPORT DATA BY GEOGRAPHIC MARKETS COULD BE OBTAINED FROM THE BEA, SURVEY OF CURRENT BUSINESS (VARIOUS ISSUES), THE US STATISTICAL ABSTRACT, OR THE PRESIDENT'S ECONOMIC REPORT (ALL OF WHICH ARE AVAILABLE FROM THE WEB)

1. PRICE DATA COULD BE OBTAINED FROM THE IMF (CITED ABOVE), AND SHOULD INCLUDE THE CONSUMER PRICE INDEX (LINE 64 IN EACH COUNTRY DATA PAGE); BUT OTHER PRICE INDEXES COULD BE USED INSTEAD, INCLUDING THE WHOLESALE PRICE INDEX, ETC.

1. DATA SOURCES: FC/$ EXCHANGE RATES COULD BE OBTAINED FROM THE IMF, INTERNATIONAL FINANCIAL STATISTICS (ANNUAL OR MONTHLY REPORTS), OR FROM ANY OTHER SOURCE, SUCH AS THE FEDERAL RESERVE BULLETIN, US STATISTICAL ABSTRACT, ETC. (CURRENCY RATES COULD BE RETRIEVED FROM THE WEB, EXCEPT FOR THE IMF DATA)