Devaluation, pass-through and foreign reserves dynamics in a tourism economy

This paper examines the effects of currency devaluations on goods prices and foreign reserves for a small-open economy with inbound tourism. Tourism transforms non-traded goods into exportable goods. Devaluations yield an over pass-through to the prices of the non-traded tourism goods. This may hurt the trade balance and hence lead to a decline in foreign reserves for the economy.

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Year of publication:	2013
Authors:	Chao, Chi-Chur ; Lu, Lee-Jung ; Lai, Ching-Chong ; Hu, Shih-Wen ; Wang, Vey
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 30.2013, C, p. 456-461
Publisher:	Elsevier
Subject:	Tourism \| Exchange rate \| Pass-through

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Type of publication:	Article
Classification:	F31 - Foreign Exchange ; L83 - Sports; Gambling; Recreation; Tourism
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010608308