Fendel, Ralf; Frenkel, Michael; Swonke, Christoph - In: German Economic Review 9 (2008) 05, pp. 160-179
In new open-economy macroeconomic models, the assumption on the pricing behavior of firms in international trade plays a central role. Whether firms apply producer currency pricing (PCP) or local currency pricing (LCP) crucially affects, for example, the design of optimal monetary policy or the...