Pricing To Market And The Real Exchange Rate PDF Download
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Author | : Hamid Faruqee |
Publisher | : International Monetary Fund |
Total Pages | : 42 |
Release | : 1995 |
Genre | : Business & Economics |
ISBN | : |
Download Pricing to Market and the Real Exchange Rate Book in PDF, ePub and Kindle
This paper investigates the consequences of pricing to market for exchange rate pass-through and real exchange rate dynamics across different patterns of trade under market segmentation. Under two-way, intraindustry trade--where home prices display greater linkage with those of foreign competitors--domestic and export prices exhibit lower pass-through and greater destination-specific adjustment compared to intersectoral trade. With both trade patterns, pricing-to-market behavior intensifies the degree of persistence in the real exchange rate under nominal rigidities, and allows monetary shocks to have permanent effects on relative prices when goods markets remain segmented.
Author | : Holger Brauer |
Publisher | : Springer Science & Business Media |
Total Pages | : 250 |
Release | : 2003 |
Genre | : Foreign exchange rates |
ISBN | : 9783540004301 |
Download The Real Exchange Rate and Prices of Traded Goods in OECD Countries Book in PDF, ePub and Kindle
Author | : Mr.Peter B. Clark |
Publisher | : International Monetary Fund |
Total Pages | : 40 |
Release | : 1997-10-01 |
Genre | : Business & Economics |
ISBN | : 1451936621 |
Download Exchange Rate Volatility, Pricing to Market and Trade Smoothing Book in PDF, ePub and Kindle
This paper investigates the consequences of exchange rate volatility on the variability of export prices and quantities in the presence of market segmentation and pricing to market. Firms stabilize destination prices through systematic price discrimination, limiting the degree of exchange rate pass-through. Consequently, the variability of exchange rates is not fully translated into prices and quantities at the point of destination. Empirical estimates using aggregate price data for the G-7 industrial countries show incomplete pass-through in variances, with considerable variation among these countries. U.S. industry specific data also indicate incomplete pass-through in most cases, with considerable variation across industries.
Author | : Ronald MacDonald |
Publisher | : Psychology Press |
Total Pages | : 465 |
Release | : 2007 |
Genre | : Foreign exchange |
ISBN | : 0415125510 |
Download Exchange Rate Economics Book in PDF, ePub and Kindle
This book examines the influence of fiscal policy on exchange rates, recent development in the econometric modelling of exchange rates, and exchange rate modelling for developing countries.
Author | : Kenneth W. Clements |
Publisher | : Cambridge University Press |
Total Pages | : 401 |
Release | : 2013-01-31 |
Genre | : Business & Economics |
ISBN | : 110701476X |
Download Currencies, Commodities and Consumption Book in PDF, ePub and Kindle
Discusses economic issues associated with exchange rates, commodity prices, the economic size of countries and alternatives to PPP exchange rates.
Author | : Benoît Mercereau |
Publisher | : International Monetary Fund |
Total Pages | : 37 |
Release | : 2003-05-01 |
Genre | : Business & Economics |
ISBN | : 1451853238 |
Download Stock Markets and the Real Exchange Rate Book in PDF, ePub and Kindle
The paper presents an N-country model with stock markets, in which a closed-form solution for the real exchange rate is derived. Risky asset prices and allocation of risky assets among countries are determined endogenously. Such a framework allows an analysis of how fundamental parameters, such as the variance and covariance of the risky assets or demographic variables, affect the real exchange rate. The predictions of the model are contrasted with the Balassa-Samuelson effect. A new transmission channel of the real exchange rate for parameters such as income on net foreign assets, risk aversion, and risk-hedging opportunities is also explored.
Author | : Pau Rabanal |
Publisher | : International Monetary Fund |
Total Pages | : 48 |
Release | : 2006-07 |
Genre | : Business & Economics |
ISBN | : |
Download Euro-Dollar Real Exchange Rate Dynamics in an Estimated Two-Country Model Book in PDF, ePub and Kindle
We use a Bayesian approach to estimate a standard two-country New Open Economy Macroeconomics model using data for the United States and the euro area, and we perform model comparisons to study the importance of departing from the law of one price and complete markets assumptions. Our results can be summarized as follows. First, we find that the baseline model does a good job in explaining real exchange rate volatility but at the cost of overestimating volatility in output and consumption. Second, the introduction of incomplete markets allows the model to better match the volatilities of all real variables. Third, introducing sticky prices in Local Currency Pricing improves the fit of the baseline model but does not improve the fit as much as introducing incomplete markets. Finally, we show that monetary shocks have played a minor role in explaining the behavior of the real exchange rate, while both demand and technology shocks have been important.
Author | : Yakov Amihud |
Publisher | : Beard Books |
Total Pages | : 268 |
Release | : 2003 |
Genre | : Business & Economics |
ISBN | : 9781587981593 |
Download Exchange Rates and Corporate Performance Book in PDF, ePub and Kindle
This is a reprint of a previously published book. It consists of a series of papers by experts in the field on how the exchange rate volatility of the 1980s affected the financial policies of international firms.
Author | : Natalie Chen |
Publisher | : International Monetary Fund |
Total Pages | : 58 |
Release | : 2014-03-12 |
Genre | : Business & Economics |
ISBN | : 1475526393 |
Download Quality, Trade, and Exchange Rate Pass-Through Book in PDF, ePub and Kindle
This paper investigates theoretically and empirically the heterogeneous response of exporters to real exchange rate fluctuations due to product quality. Our model shows that the elasticity of demand perceived by exporters decreases with a real depreciation and with quality, leading to more pricing-to-market and to a smaller response of export volumes to a real depreciation for higher quality goods. We test the proposed theory using a highly disaggregated Argentinean firm-level wine export dataset between 2002 and 2009 combined with experts wine rankings as a measure of quality. The model predictions find strong support in the data and the results are robust to different measures of quality, samples, specifications, and to the potential endogeneity of quality.
Author | : Steve Brito |
Publisher | : International Monetary Fund |
Total Pages | : 21 |
Release | : 2018-05-10 |
Genre | : Business & Economics |
ISBN | : 1484356349 |
Download Real Exchange Rates, Economic Complexity, and Investment Book in PDF, ePub and Kindle
We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model. However, in other emerging market and developing economies, as well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when the domestic currency strengthens. This result is consistent with Diaz Alejandro (1963)—in economies where capital goods are mostly imported, a stronger real exchange rate reduces investment costs for domestic firms.