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A gravity model is used to assess the separate effects of exchange rate volatility and currency unions on international trade. The panel data set used includes bilateral observations for five years spanning 1970 through 1990 for 186 countries. In this data set, there are over one hundred...
Persistent link: https://www.econbiz.de/10012471350
This paper compares the responses of intra- and extra-firm trade to exchange rate changes. It does so both to inform the debate on whether these responses are qualitatively different and to improve understanding of the microfoundations of features of trade behavior such as long adjustment lags,...
Persistent link: https://www.econbiz.de/10012471788
This paper uses three models of a small open economy to analyze the effects of terms of trade and exchange rate changes (i.e. devaluations) on labor market adjustment. First, a three goods (exportables, importables, non-tradables), four factors model is developed and used to investigate how an...
Persistent link: https://www.econbiz.de/10012476959
This paper explores the new interconnections between real and financial policies that affect international transactions. Among other conclusions are the following. (1) In a world of spatially mobile capital and reasonably accurate expectations, trends in international competitiveness and...
Persistent link: https://www.econbiz.de/10012478003
found in NBER Working Paper #389. The model contains equations for import demands, bilateral trade flows and trade prices …
Persistent link: https://www.econbiz.de/10012478758
account and exchange rate. The model is designed to concentrate on the determination of trade flows, prices and exchange rates …
Persistent link: https://www.econbiz.de/10012478759
Do prices respond to macro shocks? Does the mere presence of international frontiers hinder trade? We revisit these … questions by studying a dataset of online book prices for a number of US and Canadian retailers. We believe our dataset is well … dispersion. Our main findings are: online book prices display significant stickiness; there is a large degree of heterogeneity …
Persistent link: https://www.econbiz.de/10012463008
regardless of whether adjustment occurs through movements in relative prices or quantities. This result warns against …
Persistent link: https://www.econbiz.de/10012464851
We examine the relative predictive power of the sticky price monetary model, uncovered interest parity, and a transformation of net exports and net foreign assets. In addition to bringing Gourinchas and Rey's new approach and more recent data to bear, we implement the Clark and West...
Persistent link: https://www.econbiz.de/10012466184
account reversal is positively affected by larger current account deficits, lower prices of exports relative to imports, and …
Persistent link: https://www.econbiz.de/10012466540