Alessandria, George; Pratap, Sangeeta; Yue, Vivian - Federal Reserve Bank of Philadelphia - 2013
document two main features of exports that are puzzling for standard trade models. First, given the change in relative prices …, exports tend to grow gradually following a devaluation. Second, high interest rates tend to suppress exports. To address these … features giving rise to sluggish exports lead to more gradual net export reversals, sharper contractions and recoveries in …