Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in … which firms set their export prices when nominal prices must be pre-set. But to date, all of these studies take the currency … can choose the currency in which they set prices for sales to foreign markets. We make two alternative assumptions about …

More than half of U.S. currency circulates abroad. As a result, much of the seignorage income of the United States is … foreign demand for its currency. In the absence of such demand, the model implies that the Friedman rule--deflation at the … foreign demand for domestic currency is taken into account, the Friedman rule ceases to be Ramsey optimal. Calibrated versions …

and found that the currency in which prices are set has significant implications for exchange rate pass-through to import … goods, the more likely its exporters will price in the exporter's currency. Country size and the cyclicality of real wages …, the new currency is likely to be used more extensively in trade than the sum of the currencies it replaces …

currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides … be lower, the higher is local currency invoicing of imports; and c) producer currency invoicing should be related non …

A central assumption of open economy macro models with nominal rigidities relates to the currency in which goods are … priced, whether there is so-called producer currency pricing or local currency pricing. This has important implications for … exchange rate pass-through and optimal exchange rate policy. We show, using novel transaction level information on currency and …

extent of foreign currency borrowing are key determinants of the magnitude of the contraction in consumption associated with … currency. In this setting, the revaluation of foreign debt causes a larger contraction in aggregate consumption when debt and … detrimental to household welfare due to the heterogeneous impact of the foreign debt revaluation. Our HANKSOME framework can …

properties of market equilibria, together with information on household behavior, to infer structural parameters that …