It is thus conceivable, for example, that an underestimation of the euro’s exchange rate against the US dollar will go some way towards “correcting” an underestimation of the dollar price of imported crude oil in terms of the effect on domestic prices.
At the present juncture, economists in business and policy-making institutions continue to face a mountain of thorny and complex issues. To address these, it is necessary to use not only our knowledge and experience, but also some “mountaineering” skills.