Technical correction: The inflation-adjusted index of the dollar
Last Updated: 03/09/87
The article, "The international value of the dollar: An inflation-adjusted index" in the January/February 1987 issue of Economic Persbectives' contained an error in the formulation of the equation that specified the inflationadjusted aggregate exchange rate of the dollar. As formula (1) is specified on page 2 1, the relative prices term is inverted. The correction is as follows: The ratio of the CPI for the United States to the CPI for country i is used to measure the relative movement of prices in the United States as com~aredw ith the movement of prices in country i.