volatility rises and as export demand shocks become more correlated. These theoretical results are confirmed by empirical …

domestic investment and foreign direct investment (FDI), and the correlation between exchange rate volatility and investment … exchange rate volatility under a flexible exchange rate is shown to depend on the nature of the shocks. If the dominant shocks … correlation between exchange rate volatility and the level of investment …

the welfare ranking of exchange rate regimes, and to analyze the linkages between volatility of shocks, the volume of … diversify internationally by foreign direct investment. Volatility is shown to induce both higher international trade in goods … show that the volatility of employment in the presence of real shocks is lower under a floating exchange rate regime, but …

theoretically that volatility in fundamental variables such as the nominal interest rate that drive exchange rate volatility can … investment on exchange rate volatility. It is the first paper to provide empirical evidence that interest rate volatility may …

markets on the cost of macroeconomic volatility there. We find that macroeconomic volatility has a potentially large impact on … industries with costly capacity, the multinationals would tend to invest in the more stable emerging markets. Higher volatility …