Xu, Juanyi - In: Journal of International Money and Finance 30 (2011) 7, pp. 1323-1340
This paper explores the theory of optimal currency basket in a small open economy general equilibrium model with sticky … may play different roles in invoicing trade flow. In a simple two-currency basket, one currency is used to invoice … imported intermediate goods and is called “import currency”, while the other currency is used to invoice exported finished …