Early studies on the impact of currency devaluation or depreciation on the trade balance focused on using aggregate trade data between one country and rest of the world and estimated the well-known Marshall-Lerner (ML) condition. Due to aggregation bias, a second set of studies have relied upon...

Over the past half century, Western Europe has been part of varying currency regimes. Yet, whether under Bretton Woods, the European Monetary System, or the Euro, exchange-rate fluctuations have had an influence on these countries’ trade flows with the United States at the national and the...

Couple previous studies that have investigated the J-curve phenomenon for Indonesia, have employed aggregate trade data and provided mixed results. Given the aggregation bias embodied in using trade data between Indonesia and the rest of the world, we disaggregate Indonesian trade data by...