The paper derives the static and dynamic stability conditions of the simultaneous short run equilibrium of the spot and forward exchange markets by analyzing the direct impact of changes in the two exchange rates on the behavior of the various market participants as well as the indirect impact...

In the framework of a two-good, two-factor model it is evident that the pattern of trade can be inferred from the change in commodity prices resulting from the opening of trade. Thus, if trade increases the relative price of a commodity, we expect that commodity to be exported, while the good...

China's currency policy has been criticized for its apparent pursuit of mercantile advantage by artificially stimulating exports, which potentially have adverse effects on other economies. While China's currency policy may have positive output effects, there may be additional profits or losses....

This paper considers trade policies and welfare in a Harris-Todaro model with risk averse workers. Workers are assumed to have identical and homothetic preferences, but their incomes differ, depending on whether and where they are employed. When workers are equally weighted, maximizing social...

Cross-pollination can be caused by birds, insects and wind. Genetically modified (GM) seeds are produced each year in a controlled environment to maintain their purity. However, pollen from the GM crop can be transferred to traditional crops. When the GM crop producers are in long-run...

Trade wars are being waged by the United States and Japan. Exports of high-tech inputs (e.g., fluorinated polyimides in semiconductor devices) are now curbed by these countries. Manufacturing high-quality outputs require the use of high-tech inputs. Exports of high-tech inputs may not only...