investment and a relationship between trade and exchange rate volatility that depends on the sign of bilateral trade balances …

This paper studies how firm-level export performance is affected by Real Exchange Rate (RER) volatility and … than 100,000 Chinese exporters over the 2000-2006 period. We confirm a trade-deterring effect of RER volatility. We find … volatility and that this effect is magnified for financially vulnerable firms. As expected, financial development seems to dampen …

Engel and Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and … that exchange rate fluctuations explain about one-third of the volatility increase. In re-evaluating the border effect …, this study shows that cross-country heterogeneity in price volatility can lead to significant bias in measuring the border …

The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central … bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes … uncertainty is mitigated. As a consequence, monetary union enlargement may lead to a more aggressive fiscal stance in some member …