Corsetti, Giancarlo; Dedola, Luca - Banca d'Italia - 2002
exchange rate. Hence, within limits dictated by the possibility of arbitrage, profit-maximizing monopolistic firms drive a … international transmission, nominal and real depreciations worsens the terms of trade. In general, the nominal and real exchange … rate are more volatile than fundamentals, and large movements in the international prices translate into small changes in …