Exchange Rate Pass-Through, the Terms of Trade and the Trade Balance.

We show that if exchange rate pass-through is incomplete, a country's terms of trade may move in the same or contrary direction to the nominal value of its currency. Moreover, when the degree of pass-through is endogenous, the trade balance must improve if the currency devalues.

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Year of publication:	1999
Authors:	Murphy, E. ; Iapadre, L.
Institutions:	Department of Economics, National University of Ireland
Subject:	TRADE \| EXCHANGE RATE \| INTERNATIONAL ECONOMY

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Series:	Department of Economics.
Type of publication:	Book / Working Paper
Notes:	19 pages
Classification:	F41 - Open Economy Macroeconomics ; F31 - Foreign Exchange ; F10 - Trade. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005634447