Regress the annual rate of exchange rate changes on the annual inflation differential to estimate the intercept and the slope coefficient and interpret the regression results. Has the Romanian export become more or less competitive against the U.S. over these two decades?
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 77 Year A 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 B C CPI (Romania) CPI (US) 31.98 43.01 52.7 60.75 67.97 74.09 78.95 82.77 89.27 94.26 100 105.79 109.32 113.67 114.89 114.2 112.44 113.95 119.22 123.78 127.04 D E F G H K Inflation in Romania Inflation in U.S. Inflation Differential FX Rates (Lei/$) $ Appreciation Q (In Romania) Cumulative Q 78.97 2.17 81.2 0.9754 34.49% 22.53% 82.49 2.82% 1.59% 2.27% 30.80% 20.61% 12.72% 1.0604 1.034248097 1.1238 1.162291442 84.36 15.28% 86.62 11.88% 2.68% 8.97% 1.1097 1.289807515 2.91 3.31 3.32 3.26 2.91 2.81 2.44 2.52 89.56 9.00% 3.39% 5.43% 92.45 6.56% 3.23% 3.23% 1.1811 1.523336799 1.0690 1.628479558 1.1738 1.911576549 95.09 4.84% 2.86% 1.93% 98.74 7.85% 3.84% 3.87% 34.10% 13.75% 0.30% -1.81% -10.74% -3.44% -13.17% 3.28% 21.03% 4.26% -4.09% 13.77% -4.03% 0.60% 19.70% 98.39 5.59% -0.35% 5.97% 3.05 100 6.09% 1.64% 4.38% 3.18 103.16 5.79% 3.16% 2.55% 3.05 105.29 3.34% 2.06% 1.25% 1.0057 1.922451019 0.8755 1.683139251 1.0011 1.685063581 1.0692 1.801676678 0.8899 1.603342981 1.0679 1.712189426 0.9886 1.692664933 0.8294 1.403898143 0.9604 1.348246338 106.83 3.98% 1.46% 3.47 3.33 3.35 2.48% 108.57 1.07% 1.63% -0.55% 108.7 -0.60% 0.12% -0.72% 4.01 110.07 -1.54% 1.26% -2.77% 4.06 1.25% 112.41 1.34% 2.13% -0.77% 4.05 -0.25% 0.9948 1.341213051 115.16 4.62% 2.45% 2.13% 3.94 -2.72% 1.0498 1.407974055 117.24 3.82% 1.81% 1.98% 4.24 7.61% 0.9477 1.334296124 118.69 2.63% 1.24% 1.38% 4.24 0.00% 1.0138 1.352707541 L M N 8 + 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 77 Year A 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 B C CPI (Romania) CPI (US) 31.98 43.01 52.7 60.75 67.97 74.09 78.95 82.77 89.27 94.26 100 105.79 109.32 113.67 114.89 114.2 112.44 113.95 119.22 123.78 127.04 D E F G H K Inflation in Romania Inflation in U.S. Inflation Differential FX Rates (Lei/$) $ Appreciation Q (In Romania) Cumulative Q 78.97 2.17 81.2 0.9754 34.49% 22.53% 82.49 2.82% 1.59% 2.27% 30.80% 20.61% 12.72% 1.0604 1.034248097 1.1238 1.162291442 84.36 15.28% 86.62 11.88% 2.68% 8.97% 1.1097 1.289807515 2.91 3.31 3.32 3.26 2.91 2.81 2.44 2.52 89.56 9.00% 3.39% 5.43% 92.45 6.56% 3.23% 3.23% 1.1811 1.523336799 1.0690 1.628479558 1.1738 1.911576549 95.09 4.84% 2.86% 1.93% 98.74 7.85% 3.84% 3.87% 34.10% 13.75% 0.30% -1.81% -10.74% -3.44% -13.17% 3.28% 21.03% 4.26% -4.09% 13.77% -4.03% 0.60% 19.70% 98.39 5.59% -0.35% 5.97% 3.05 100 6.09% 1.64% 4.38% 3.18 103.16 5.79% 3.16% 2.55% 3.05 105.29 3.34% 2.06% 1.25% 1.0057 1.922451019 0.8755 1.683139251 1.0011 1.685063581 1.0692 1.801676678 0.8899 1.603342981 1.0679 1.712189426 0.9886 1.692664933 0.8294 1.403898143 0.9604 1.348246338 106.83 3.98% 1.46% 3.47 3.33 3.35 2.48% 108.57 1.07% 1.63% -0.55% 108.7 -0.60% 0.12% -0.72% 4.01 110.07 -1.54% 1.26% -2.77% 4.06 1.25% 112.41 1.34% 2.13% -0.77% 4.05 -0.25% 0.9948 1.341213051 115.16 4.62% 2.45% 2.13% 3.94 -2.72% 1.0498 1.407974055 117.24 3.82% 1.81% 1.98% 4.24 7.61% 0.9477 1.334296124 118.69 2.63% 1.24% 1.38% 4.24 0.00% 1.0138 1.352707541 L M N 8 +
