In this paper we analyze some policy implications of incompleteness of markets in trade models, where there is both inter-spatial and intertemporal trade between countries. We interpret the absence of intertemporal trade as an absence of intermediation services provided by both domestic and foreign service providers. For simplicity, we consider extreme cases where intertemporal intermediation s...

Foreign exchange reserves can be an important indicator to see how far a country carry out international trade and show the strength of country's economic fundamentals. The size foreign is influenced by several factors, one which export import activities. This study aims identify effect exports imports on position Indonesia's reserves. data used are secondary from Central Statistics Agency Bank...

Empirical evidences show that Japan-based companies moved their major operations to the USA due to the currency appreciation of Japanese Yen in 1980s. However, the multinational firms moving their operations abroad still face both the risk of foreign price and the risk of foreign exchange rate. According to the purchasing power parity (PPP) and interest rate parity (IRP), the foreign exchange r...

We present an empirical investigation of the hypotheses that exchange rate volatility may have an impact on both the volume and variability of trade flows by considering a broad set of industrial countries’ bilateral real trade flows over the period 1980–1998. Similar to the findings of earlier theoretical and empirical research, our first set of results shows that the impact of exchange rate u...

the effect of symmetric (non-symmetric) foreign exchange rate shocks on iranian agricultural import and exports was explored throughout the current research.. time series of 1973-2007 along with hodrick and prescott filter method were employed. the results as obtained through vector error correction and johnson model indicated that positive (negative) shocks introduce positive (negative) effect...

in this paper we investigated effect of economic uncertainty on money demand function of iran during(1352-1386). at first by using a general equilibrium theory it is shown that in spite of the existence of economic uncertainties, most of agents who are risk-averse consider these uncertainties when constitute their port folio. they consider money demand is a function of income, interest rate and...