Exchange Rate Volatility and Trade Flows--Some New Evidence
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2004-05-19
Total Pages: 132
ISBN-13: 1498330282
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Exchange Rate Fluctuations and Trade Flows
Author: Mr.Giovanni Dell'Ariccia
Publisher: International Monetary Fund
Published: 1998-08-01
Total Pages: 28
ISBN-13: 1451852959
DOWNLOAD EBOOKThis paper analyzes the effects of exchange rate volatility on bilateral trade flows. Through use of a gravity model and panel data from western Europe, exchange rate uncertainty is found to have a negative effect on international trade. The results seem to be robust with respect to the particular measures representing exchange rate uncertainty. Particular attention is reserved for problems of simultaneous causality. The negative correlation between trade and bilateral volatility remains significant after controlling for the simultaneity bias. However, a Hausman test rejects the hypothesis of the absence of simultaneous causality.
A New Look at Exchange Rate Volatility and Trade Flows
Author: Mr. Peter B. Clark
Publisher: International Monetary Fund
Published: 2004-09-30
Total Pages: 72
ISBN-13: 1452733872
DOWNLOAD EBOOKThe effect of exchange rate volatility on trade flows was examined by a 1984 IMF study on G-7 countries. Over the past two decades, many developments in the world economy, such as the currency crises in the 1990s and increasing cross-border capital flows, may have exacerbated exchange rate volatility, while others, such as a deepening of the market in foreign exchange hedging instruments, may have reduced the impact of volatility on trade flows. Using recent advances in the economic theories on trade and in statistical methodologies, this paper revisits this important issue by taking into account these new developments and examining their effects on developing and transition economies, as well as on developed countries.
Exchange Rate Volatility and World Trade
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 1984-07-08
Total Pages: 76
ISBN-13: 9781557750655
DOWNLOAD EBOOKIn View of the continuation of substantial movements in exchange rate relationships among major currencies, the recent increase in protectionist pressures, and the disappointing performance of world trade, renewed concern has been expressed about the possible adverse effects of exchange rate variability on trade. Against the background of this concern, the following decision was reached at the ministerial meeting of the General Agreement of Tariffs and Trade (GATT) in November 1982.
A New Look at Exchange Rate Volatility and Trade Flows
Author: Peter Barton Clark
Publisher: Occasional Papers
Published: 2004
Total Pages: 63
ISBN-13: 9781589063587
DOWNLOAD EBOOKThe effect of exchange rate volatility on trade flows was examined by a 1984 IMF study on G-7 countries. Over the past two decades, many developments in the world economy, such as the currency crises in the 1990s and increasing cross-border capital flows, may have exacerbated exchange rate volatility, while others, such as a deepening of the market in foreign exchange hedging instruments, may have reduced the impact of volatility on trade flows. Using recent advances in the economic theories on trade and in statistical methodologies, this paper revisits this important issue by taking into account these new developments and examining their effects on developing and transition economies, as well as on developed countries.
Menu Costs, Trade Flows, and Exchange Rate Volatility
Author: Logan T. Lewis
Publisher:
Published: 2014
Total Pages:
ISBN-13:
DOWNLOAD EBOOKExchange Rates, Trade, and the U.S. Economy
Author: John Tirman
Publisher:
Published: 1985
Total Pages: 328
ISBN-13:
DOWNLOAD EBOOKThese essays review recent advances in exchange rate analysis and new empirical analysis of the behavior of exchange rates and their effects on international trade and the U.S. economy. The first section deals with the determination of exchange rates and their alleged volatility and disequilibrium levels. The second section concerns the effects of flexible exchange rates on international trade, and the third treats the macroeconomic linkages between economies and international influences on the U.S. economy. ISBN 0-88410-948-8 : $39.95.
Dominant Currency Paradigm: A New Model for Small Open Economies
Author: Camila Casas
Publisher: International Monetary Fund
Published: 2017-11-22
Total Pages: 62
ISBN-13: 1484330609
DOWNLOAD EBOOKMost trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) the terms-of-trade is stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports, driven by the dollar exchange rate while exports respond weakly, if at all; (e) strengthening of the dominant currency relative to non-dominant ones can negatively impact global trade; (f) optimal monetary policy targets deviations from the law of one price arising from dominant currency fluctuations, in addition to the inflation and output gap. Using data from Colombia we document strong support for the dominant currency paradigm.
Exchange Rates, Prices and World Trade
Author: Meher Manzur
Publisher: Routledge
Published: 2002-09-11
Total Pages: 224
ISBN-13: 1134885121
DOWNLOAD EBOOKThis book provides a systematic treatment of the interaction between national price levels and exchange rates, and the formation of expectation regarding exchange rates on trade flows. The thrust is empirical and the study is made up of five self-contained chapters with a common theme, viz., the behaviour of prices and quantities in international goods and financial markets. The major motivation is to distill the key issues addressed in the extremely large literature and present these issues in a succinct analytical manner.
Exchange Rates in the Periphery and International Adjustment Under the Gold Standard
Author: Mr.Solomos Solomou
Publisher: International Monetary Fund
Published: 2003-02-01
Total Pages: 38
ISBN-13: 1451846126
DOWNLOAD EBOOKThe role of exchange rate flexibility in the periphery of the gold standard has been grossly overlooked. This paper builds a new dataset on trade-weighed exchange rates for the period 1870-1913 and finds that large currency movements in periphery countries operating inconvertible paper-money and silver-standard regimes induced major fluctuations in effective exchange rates worldwide. We relate the phenomenon to the international trade structure at the time and show that such currency fluctuations had powerful effects on trade flows. We conclude that nominal exchange rate flexibility in the periphery was an important ingredient of international payments adjustment under the gold standard.
