SEVEN-FAC­TOR FRAME­WORK

Finweek English Edition - - Economic trends & analysis -

MORGAN STAN­LEY’S cur­rency pre­dic­tion is based on a seven-fac­tor frame­work, in­clud­ing the Big Mac In­dex, pur­chas­ing power par­ity, the size of a coun­try’s cur­rent ac­count deficit, gross for­eign re­serves and unit labour costs. While not in­fal­li­ble, it does make for in­ter­est­ing anal­y­sis.

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