A Marxist Theory for Exchange Rate Determination: An Empirical Investigations

Universidade Presbiteriana Mackenzie Economics Working Paper

28 Pages Posted: 22 Nov 2003

See all articles by Leonardo Cruz Basso

Leonardo Cruz Basso

Mackenzie Presbyterian University - Business Administration

Roseli da Silva

Universidade Presbiteriana Mackenzie - College of Economic and Accounting Sciences and Administration

Susana Chen Chang

Universidade Presbiteriana Mackenzie

Date Written: October 8, 2003

Abstract

The study proposes an alternative theory for determining the exchange rate with a basis on the currency value concept formulated by Rudolf Hilferding. The currency value is defined as the ratio between the Gross Domestic Product (GDP) and the number of working hours spent to produce it. The exchange rate equals the currency value between two countries. The novelty of this viewpoint is that prices and productivity are present in the equation, contrary to the theory of the purchasing power parity, where productivity is included in the prices.

Keywords: Exchange Rate, labor theory of value, productivity

JEL Classification: F41, E44

Suggested Citation

Cruz Basso, Leonardo and da Silva, Roseli and Chen Chang, Susana, A Marxist Theory for Exchange Rate Determination: An Empirical Investigations (October 8, 2003). Universidade Presbiteriana Mackenzie Economics Working Paper, Available at SSRN: https://ssrn.com/abstract=457020 or http://dx.doi.org/10.2139/ssrn.457020

Leonardo Cruz Basso (Contact Author)

Mackenzie Presbyterian University - Business Administration ( email )

Rua da Consolacao, 896 7 - andar sala 73
01302-907 Sao Paulo
Brazil
+55 11 32368597 (Phone)
+55 11 32368600 (Fax)

Roseli Da Silva

Universidade Presbiteriana Mackenzie - College of Economic and Accounting Sciences and Administration ( email )

Rua da Consolação
896 7andar sala 75 CEP
01302907 São Paulo
Brazil
55-11-3236-8597 (Phone)

Susana Chen Chang

Universidade Presbiteriana Mackenzie ( email )

Rua da Consolação
896 7º andar sala 75 CEP
01302907 São Paulo
Brazil
55-11-3236-8597 (Phone)

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