International Trade and Exchange Rate

The Exchange Rate Regime and International Trade

The study of the relation between the exchange rates regime and international trade is done using an inter-disciplinary vision that contains knowledge from four different disciplines: economics, history, mathematics and computer sciences. In the case of pure theory of international trade, there is made an abstraction of the fact that international trade is done using money. The theoretical anal...

The volatility of international trade flows and exchange rate uncertainty∗

Empirical evidence obtained from data covering Eurozone countries, other industrialized countries, and newly industrialized countries (NICs) over 1980– 2006 shows that exchange rate uncertainty has a consistent positive and significant effect on the volatility of bilateral trade flows. A one standard deviation increase in exchange rate uncertainty leads to an eight per cent increase in trade vo...

Real Effective Exchange Rate and Trade Performance in Iran

The Purpose of this paper is to investigate the long-run effect of real effective exchange rate on Iran non-oil trade balance. The methodology is based on ARDL procedure that can be applied irrespective of whether the regressors are I(0) or I(1). The results show the real depreciation has not a favorable long - run effect on the non-oil trade balance of Iran from 1979 to 2001.

German Exchange Rate Exposure at DAX and Aggregate Level, International Trade, and the Role of Exchange Rate Adjustment Costs

Trade Agreements, Exchange Rate Disagreements

Problems often arise when partners in regional integration agreements (RIA) have divergent exchange rate policies, as has happened in recent years with the Southern Cone Common Market (Mercosur). The January 1999 devaluation of the Brazilian real strained the relationship between Argentina and Brazil, setting off a series of events that included protectionist measures in Argentina, Argentine bu...