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1

My problem is: because Brazil is the origin for the exports to all other countries, GDP_O, POP_O and any other variables representing Brazilian data will be equal for all observations and as such there will be perfect multicollinearity. This isn't perfect multicollinearity. It's a lack of time/space variation. Multicollinearity occurs between features, not ...


5

There is no central authority that determines the strength of currency in floating exchange rate regime as it’s determined by the market. As in every market you have demand and supply for currency. The demand is given by people who want to hold the Thai currency. That is people who want to import goods from Thailand, people who want to invest in Thai ...


6

Think of the exchange rate as the price of a currency—in this case the Thai baht. So the exchange rate (THBUSD in this case) is just how many USD you need to buy one THB. As you said, multiple factors determine the equilibrium price of the currency... most often quoted is perhaps the continued current account surplus (more or less that Thailand exports more ...


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