Exchange Rate Risk, Exchange Rate Regime and the Volume of International Trade.
The authors examine the effect of exchange-rate regimes on the volume of internatio nal trade. Bilateral trade flows among countries with floating exchan ge rates are higher than those among countries with fixed rates. Whil e exchange-rate risk does reduce the volume of trade among countries regardless of the nature of their exchange-rate regime, the greater r isk faced by traders in floating exchange-rate countries is more than offset by the trade-reducing effects of restrictive commercial polic ies imposed by fixed exchange rate countries. Copyright 1988 by WWZ and Helbing & Lichtenhahn Verlag AG
Year of publication: |
1988
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Authors: | Brada, Josef C ; Mendez, Jose |
Published in: |
Kyklos. - Wiley Blackwell, ISSN 0023-5962. - Vol. 41.1988, 2, p. 263-80
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Publisher: |
Wiley Blackwell |
Saved in:
Saved in favorites
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