This note investigates effects of exchange rate uncertainty on optimal trade policies and market prices within a standard export subsidy model. As exchange rate changes, relative efficiencies of firms in different countries change. In accordance with the conventional result, we show that changes...

Real GDP per capita and capital stock in Cote d'Ivoire grew strongly from 1960 to 1979, but have declined ever since, for twenty-five years. As a result, the country has traveled a full circle from economic success to failure in little more than a generation. What are the long-term factors...

There has been a general consensus among economists that while the long-run effects of money are felt only on prices with no impact on real variables, monetary policy changes do have important short-run effects on real variables. The objective of the paper is to investigate whether money has...

Applying the procedures of variance decomposition and impulse response functions, this working paper aims to examine the impact of changes in policy variables namely, monetary aggregate (M1), exchange rate and interest rate on two monetary goal variables, namely output and price level in Fiji...