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Theory suggests a significant positive relationship in long-run equilibrium between net foreign assets (NFA) as a proportion of GDP and real exchange rates. Empirical tests have ignored two issues: the large variation in cross-country trade/GDP ratios, which is likely to induce substantial...
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This paper investigates the determinants of the trade balance using panel data for 32 industrialized and emerging economies for the period 1990?2007. The results based on fixed effects models and linear mixed models allowing for random slope coefficients, show that the trade balance as a...
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According to the conventional wisdom, "peripheral" Southern European countries members of the euro area (Greece, Italy, Portugal, and Spain) suffer from a problem of competitiveness. Since devaluation is not possible because they are part of the euro, the adjustment should come through...
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Handelsbilanz auf die gleiche Art reagiert, wenn der nominale Wechselkurs oder wenn das Preisniveau sich ändert. Beide werden als … äquivalent gesehen und das Vorzeichen der Reaktion der Handelsbilanz hängt nur von der Erfüllung der Marshall …-Lerner-Bedingung (ML) ab. Wie allerdings analytisch in diesem Papier gezeigt wird, kann die Handelsbilanz auf ganz unterschiedliche Weise …
Persistent link: https://www.econbiz.de/10011818533
Until 2012, the Central Bank of Iran (CBI) used its policy rate to stabilise the rial's exchange rate and, given a persistent current-account surplus, had accumulated sizeable currency reserves. In 2012, however, international sanctions against Iran intensified and the value of the rial halved...
Persistent link: https://www.econbiz.de/10012285456