Bahmani‐Oskooee, Mohsen; Xi, Dan - In: Journal of Chinese Economic and Foreign Trade Studies 5 (2012) 1, pp. 20-28
Purpose – Impact of currency depreciation or devaluation on the trade balance is not instantaneous. Indeed, because of adjustment lags favorable effects of depreciation is only realized in the future. This short‐run dynamics of the trade balance is summarized by the S‐Curve phenomenon. The...