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Price levels and Exchange Rate in the Long Run

Price levels and Exchange Rate in the Long Run. WONG Ka Fu 7th February 2001. Basic math review. X=A/B ? ln X = ln A - ln B Y=Y(x) ? d ln Y / dx = d lnY / dY ? dY / dx = (1/Y) (dY/dx). Basic math review. P=P(t) ? d ln P / dt = d lnP / dP ? dP / dt =(1/P) (dP/dt)

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Price levels and Exchange Rate in the Long Run