Using new data on currency invoicing for Belgian firms, we analyze how firms make their currency choice, for both … staggered price setting with endogenous currency choice. Our structural specification provides a new test of the allocative … consequences of nominal rigidities, by estimating the treatment effect of foreign-currency price stickiness on the dynamic response …

on currency invoicing of Belgian firms, we study how the currency of invoicing interacts with firm characteristics in … shaping the extent of exchange rate pass-through at different time horizons. The US dollar and the Euro are the dominant … currencies in both Belgium's exports and imports, with substantial variation in currency choice across firms and products even …

We develop a dual currency search model to study equilibrium currency exchange and the determination of nominal … numerical methods to solve for the steady-state distributions of currency portfolios, nominal exchange rates and value functions …. When one of the currencies is 'risky', equilibria exist in which the safe currency trades for multiple units of the risky …

We develop a dual currency search model to study equilibrium currency exchange and the determination of nominal … numerical methods to solve for the steady-state distributions of currency portfolios, nominal exchange rates and value functions …. When one of the currencies is 'risky', equilibria exist in which the safe currency trades for multiple units of the risky …