A New Look at Exchange Rate Volatility and Trade Flows /

The effect of exchange rate volatility on trade flows was examined by a 1984 IMF study on G-7 countries. Over the past two decades, many developments in the world economy, such as the currency crises in the 1990s and increasing cross-border capital flows, may have exacerbated exchange rate volatilit...

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Bibliographic Details
Main Author: Clark, Peter
Other Authors: Sadikov, Azim, Tamirisa, Natalia, Wei, Shang-Jin
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2004.
Series:Occasional Papers; Occasional Paper ; No. 2004/009
Online Access:Full text available on IMF
Description
Summary:The effect of exchange rate volatility on trade flows was examined by a 1984 IMF study on G-7 countries. Over the past two decades, many developments in the world economy, such as the currency crises in the 1990s and increasing cross-border capital flows, may have exacerbated exchange rate volatility, while others, such as a deepening of the market in foreign exchange hedging instruments, may have reduced the impact of volatility on trade flows. Using recent advances in the economic theories on trade and in statistical methodologies, this paper revisits this important issue by taking into account these new developments and examining their effects on developing and transition economies, as well as on developed countries.
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Physical Description:1 online resource (63 pages)
Format:Mode of access: Internet
ISSN:0251-6365
Access:Electronic access restricted to authorized BRAC University faculty, staff and students