exchange rate so as to facilitate terms of trade adjustment. We show that optimal nominal exchange rate volatility will reflect … bias in production. Quantitatively, we find the optimal exchange rate volatility should be significantly less than would be … optimal exchange rate volatility may be non-monotonic …

flexible exchange rates, the relationship between exchange rate volatility and growth, and the role of exchange rate …

Among the developing countries of the world, those emerging markets that have sought some degree of integration into … world finance are characterized by higher per capita incomes, higher long-run growth rates, and lower output and consumption … volatility. These characteristics are more likely to be causes than effects of financial integration. The measurable gains from …

a counterfactual world without trade frictions in manufactures. Removing these trade frictions goes a long way toward …

are associated with lower spreads between the country's borrowing rate and world interest rates. Both effects jointly … the total trade balance. Furthermore, they generate excess volatility of consumption over output and a large volatility of …