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Vertical Production and Trade Interdependence and Welfare

Huang, Kevin X. D.; Liu, Zheng - 2019

The authors study international transmissions and welfare implications of monetary shocks in a two-country world with multiple stages of production and multiple boarder-crossings of intermediate goods. This empirically relevant feature is important, as it has opposite implications for two...

Persistent link: https://www.econbiz.de/10014062586

Production Interdependence and Welfare

Huang, Kevin X. D.; Liu, Zheng - 2021

The international welfare effects of a country's monetary policy shocks have been controversial in the literature. While a unilateral monetary expansion increases the production efficiency in each country, it affects terms of trade in favor of one country against another depending on the...

Persistent link: https://www.econbiz.de/10013319226

Transmission of Nominal Exchange Rate Changes to Export Prices and Trade Flows and Implications for Exchange Rate Policy

Hoffmann, Mathias - 2016

We discuss how the welfare ranking of fixed and flexible exchange rate regimes in a New Open Economy Macroeconomics model depends on the interplay between the degree of exchange rate pass-through and the elasticity of substitution between home and foreign goods. We identify combinations of these...

Persistent link: https://www.econbiz.de/10012991030

Transmission of Nominal Exchange Rate Changes to Export Prices and Trade Flows and Implications for Exchange Rate Policy

Holtemöller, Oliver - 2017

Persistent link: https://www.econbiz.de/10012951764

Welfare Costs of Exchange Rate Fluctuations : Evidence from the 1972 Okinawa Reversion

Kano, Kazuko; Kano, Takashi - 2022

The main tenet of the New Keynesian (NK) paradigm is that price dispersion caused by nominal price stickiness is the primary source of allocative inefficiency. This study empirically evaluates the welfare implications of NK models by observing how internal and external price dispersion responds...

Persistent link: https://www.econbiz.de/10013308249

Non-Fundamental Exchange Rate Volatility and Welfare

Straub, Roland; Tchakarov, Ivan - 2021

We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on economic activity and welfare. In the first part of the paper, the GARCH-SVAR model is applied to measure empirically the effect of the conditional exogenous exchange rate...

Persistent link: https://www.econbiz.de/10013319388

Exchange Rate Dynamics and the Welfare Effects of Monetary Policy in a Two-Country Model with Home-Product Bias

Warnock, Francis E. - 2000

International spillovers and exchange rate dynamics are examined in a two-country dynamic optimizing model that allows for home-product bias in consumption patterns: at given relative prices the ratio of home goods consumed to foreign goods consumed is higher in the home country. The setup nests...

Persistent link: https://www.econbiz.de/10014154139

Catching Up by Deglobalization : Capital Account Policy and Economic Growth

Choi, Woo Jin - 2020

We examine the role of capital account policy pertaining to productivity growth and labor allocation at the sectoral … — strategic capital account policy — contribute to the real GDP (TFP) growth through the enhancement of labor productivity in the … the manufacturing sector, the combined policy facilitates long-running productivity growth …

Persistent link: https://www.econbiz.de/10012844518

Competitive Devaluations : A Welfare-Based Approach

Corsetti, Giancarlo; Pesenti, Paolo A.; Roubini, Nouriel; … - 2006

This paper studies the mechanism of international transmission of exchange rate shocks within a three-country Center-Periphery model, providing a choice-theoretic framework for the policy analysis and empirical assessment of competitive devaluations. If relative prices and terms of trade exhibit...

Persistent link: https://www.econbiz.de/10014193867

Trade flows, prices, and the exchange rate regime

Bacchetta, Philippe; Van Wincoop, Eric - 2000

Persistent link: https://www.econbiz.de/10001558227