The paper develops a simple stochastic new open macroeconomic model in which pricesetting firms' choice between producer currency pricing and local currency pricing is endogenous. We show that, in equilibrium, firms will denominate their export price contracts in the currency of the country with...

This paper offers a fact-oriented chronology of the Danish exchange-rate policy since the introduction of the krone as the Danish currency unit in 1875. -- Exchange-rate policy ; Danish krone exchange rates ; History of exchange rates ; Gold Standard ; Bretton Woods system ; European...