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Trade Costs, Market Integration, and Macroeconomic Volatility

Naknoi, Kanda; Brunner, Allan D. - International Monetary Fund (IMF) - 2003

This paper examines the effects of trade costs on macroeconomic volatility. We first construct a dynamic, two-country general equilibrium model, where the degree of market integration depends directly on trade costs (transport costs, tariffs, etc.). The model is a extension of Obstfeld and...

Persistent link: https://www.econbiz.de/10005769265

A Currency Union for the Caribbean

Worrell, DeLisle - International Monetary Fund (IMF) - 2003

inflationary, and that, while changes in the relative prices of tradables may affect exports, tourism, and imports, nominal … exchange rate changes have no predictable effect on those relative prices. Under these circumstances, economic literature …

Persistent link: https://www.econbiz.de/10005599271

Exchange Rates in the Periphery and International Adjustment Under the Gold Standard

Catão, Luis; Solomou, Solomos - International Monetary Fund (IMF) - 2003

The role of exchange rate flexibility in the periphery of the gold standard has been grossly overlooked. This paper builds a new dataset on trade-weighed exchange rates for the period 1870-1913 and finds that large currency movements in periphery countries operating inconvertible paper-money and...

Persistent link: https://www.econbiz.de/10005769107

China; Sources of Real Exchange Rate Fluctuations

Wang, Tao - International Monetary Fund (IMF) - 2004

This paper reviews the evolution of China's real effective exchange rate between 1980 and 2002, and uses a structural vector autoregression model to study the relative importance of different types of macroeconomic shocks for fluctuations in the real exchange rate. The structural decomposition...

Persistent link: https://www.econbiz.de/10005605223

Trade Liberalization and Real Exchange Rate Movement

Li, Xiangming - International Monetary Fund (IMF) - 2003

Although theory suggests that the real exchange rate should depreciate after a credible trade liberalization but could appreciate temporarily with a noncredible one, little empirical evidence exists. Unlike existing studies that use either indirect tests or unreliable openness measures, this...

Persistent link: https://www.econbiz.de/10005769042

Exchange Rate Volatility Under Peg; Do Trade Patterns Matter?

Ngouana, Constant Lonkeng - International Monetary Fund (IMF) - 2012

This paper assesses the role of trade patterns in shaping the volatility of the effective exchange rate under two alternative peg regimes: a hard peg to a single currency and a peg to a basket of currencies. I link the changes in the nominal effective exchange rate of a pegged currency to the...

Persistent link: https://www.econbiz.de/10011242283

Real Exchange Rate Volatility and the Price of Nontradables in Sudden-Stop-Prone Economies

Mendoza, Enrique G. - International Monetary Fund (IMF) - 2006

exchange rate-adjusted prices of tradable goods does not hold for Mexican data for periods with a managed exchange rate. The … rates, could result from a Fisherian debt-deflation mechanism operating via nontradables prices in economies with dollarized …

Persistent link: https://www.econbiz.de/10005264110

Current Account Rebalancing and Real Exchange Rate Adjustment Between the U.S. and Emerging Asia

Sandri, Damiano; Rabanal, Pau; Méjean, Isabelle - International Monetary Fund (IMF) - 2011

emerging Asia tradable goods and a change in international relative prices. This paper quantifies the required adjustment in … Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the … case where export prices remain constant in one country and increase in the other. Our results are robust to different …

Persistent link: https://www.econbiz.de/10008876596

Exchange Rate Regime Considerations in an Oil Economy; The Case of the Islamic Republic of Iran

Celasun, Oya - International Monetary Fund (IMF) - 2003

This paper provides a brief overview of the evolution of exchange rate policy in the Islamic Republic of Iran from 1993 to 2002 and reviews the basic criteria for the choice of the exchange rate regime in the medium term. The analysis highlights the merits of an intermediate regime which would...

Persistent link: https://www.econbiz.de/10005599261

Limiting Currency Volatility to Stimulate Goods Market Integration; A Price-Based Approach

Parsley, David C.; Wei, Shang-Jin - International Monetary Fund (IMF) - 2001

integration of goods markets. Rather than using data on volume of trade, this paper employs a 3-dimensional panel of prices of 95 …

Persistent link: https://www.econbiz.de/10005604996