Liew, Khim-sen; Lim, Kian-Ping; Hussain, Huzaimi - EconWPA - 2003
This study addresses the question of whether exchange rate changes have any significant and direct impact on trade … study found that the role of exchange rate changes in initiating changes in the trade balances has been exaggerated. As such … postulated. In particular, we propose that trade balance is affected by real money, rather than nominal exchange rate. A …