Exchange Rates and Trade : A Disconnect? /

We examine the stability and strength of the relationship between exchange rates and trade over time using three alternative approaches, mitigating the endogeneity of the relation. We find that both exchange rate pass-through and the price elasticity of trade volumes are largely stable over time. Ec...

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Dettagli Bibliografici
Autore principale: Leigh, Daniel
Altri autori: Lian, Weicheng, Poplawski Ribeiro, Marcos, Szymanski, Rachel
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2017.
Serie:IMF Working Papers; Working Paper ; No. 2017/058
Accesso online:Full text available on IMF
Descrizione
Riassunto:We examine the stability and strength of the relationship between exchange rates and trade over time using three alternative approaches, mitigating the endogeneity of the relation. We find that both exchange rate pass-through and the price elasticity of trade volumes are largely stable over time. Economic slack and financial conditions affect the relationship, but there is limited evidence that participation in global value chains has significantly changed the exchange rate-trade relationship over time.
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Descrizione fisica:1 online resource (52 pages)
Natura:Mode of access: Internet
ISSN:1018-5941
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students