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theoretical model for explaining how the euro could have increased trade by the large amounts found in the empirical literature …. Second, we propose a sectoral dataset to test the insights from the theory. Our theoretical model shows that in a …
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This paper studies the role of financial frictions in explaining the heterogeneous effect of exchange rate uncertainty on international trade. Empirically, exports in industries in which firms have less tangible capital or rely more heavily on external finance decrease more in times of high...
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This study examines the relationship between economic policy uncertainty and exchange rate volatility in the Euro area … textual analysis methods. Findings suggest that European uncertainty significantly impacts the euro exchange rate volatility …
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