This paper relates the volatility of the (trade-weighted) effective real exchange rate to the degree of trade openness … share of an economy and the volatility of its real exchange rate. Empirical evidence on a cross-section of 54 countries … confirms this relationship: Difference in trade openness explain a large part of the cross-country variation in the volatility …

This paper relates the volatility of the trade-weighted effective real exchange rate to the degree of trade openness of … relationship: Differences in trade openness explain a large part of the cross-country variation in the volatility of the effective …