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Most European countries suffer from a structural weakness of employment and competitiveness. Can an optimal tax system reinforce European countries in this respect? If so, does this long-term policy act as a devaluation or a revaluation? In this paper, we show that fiscal devaluation can be an...
Persistent link: https://www.econbiz.de/10013045123
This paper evaluates the response of employment to exchange rate shocks at the industry level for the G-7 countries. Using a simple empirical framework that places little a priori structure on the pattern of response to shocks, we find the data are consistent with the view that employment in...
Persistent link: https://www.econbiz.de/10013220400
In the presence of rigid prices, movements in the exchange rate help to absorb external shocks and to reduce changes in net exports. However, they also affect firms’ competitiveness, marginal costs, and labor demand. In countries where labor market institutions hinder wage adjustment (for...
Persistent link: https://www.econbiz.de/10011717323
This paper evaluates the response of employment to exchange rate shocks at the industry level for the G-7 countries. Using a simple empirical framework that places little a priori structure on the pattern of response to shocks, we find the data are consistent with the view that employment in...
Persistent link: https://www.econbiz.de/10012472967
This paper evaluates the response of employment to exchange rate shocks at the industry level for G-7 countries. Using an empirical framework that places little structure on the data, we find that European industries, at least France and Germany, are much less influenced by exchange rate shocks...
Persistent link: https://www.econbiz.de/10014027370
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Peru's equilibrium real exchange rate using a cointegration analysis. The results show that export commodity prices do not … have a statistically significant impact on Peru's real effective exchange rate, suggesting that the nuevo sol is not a … effectivelly insulated Peru's real exchange rate from the impact of commodity price shocks. Peru's equilibrium real exchange rate …
Persistent link: https://www.econbiz.de/10014411898