What is ‘Import And Export Prices’
Two indexes that monitor the prices of imports and exports in the United States. The import and export prices indexes are created by compiling the prices of goods purchased in the U.S. but produced out of country (imports) and the prices of goods purchased out of country but produced in the U.S. (exports).
Explaining ‘Import And Export Prices’
The data from these indexes often has a direct impact on the bond markets. The indexes are used to help measure inflation in products that are traded globally. Bond prices will often decrease when importing inflation becomes to high, because it erodes the value of the original investment (principal).
Inflation can also hurt the equity markets, because as inflation increases, interest rates are often raised to help curtail the rising prices. Rising interest rates often mean falling stock prices.
Further Reading
- Dynamic correlation between stock market and oil prices: The case of oil-importing and oil-exporting countries – www.sciencedirect.com [PDF]
- Trade finance and the great trade collapse – www.aeaweb.org [PDF]
- Income and price elasticities of trade: some new estimates – www.tandfonline.com [PDF]
- The problem of financing of economic development – www.jstor.org [PDF]
- Financial autarky and international business cycles – www.sciencedirect.com [PDF]
- The economics and finance of bilateral clearing agreements: Germany, 1934-8 – www.jstor.org [PDF]
- Exchange rate pass-through in Turkish export and import prices – www.tandfonline.com [PDF]
- Trade-based money laundering and terrorist financing – www.degruyter.com [PDF]
- Financial development and economic growth in underdeveloped countries – www.journals.uchicago.edu [PDF]
