Bahmani-Oskooee, Mohsen; Hegerty, Scott W.; Xu, Jia - In: International Journal of Public Policy 7 (2011) 4/5/6, pp. 250-264
Because consumer prices and trade quantities tend to exhibit stronger rigidities than do nominal exchange rates, trade balances usually respond to currency appreciations and depreciations only after a time lag. This dynamic adjustment – depicted as correlations between deviations in a...