Exchange Rates and Trade Balance Adjustment in Emerging Market Economies
October 10, 2006
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Exchange Rates and Trade Balance Adjustment in Emerging Market Economies, (USA: International Monetary Fund, 0) accessed November 24, 2024
Summary
The paper finds that simple econometric specifications yield surprising rich and complex dynamics -- relative prices respond to the nominal exchange rate and pass-through effects, import and export volumes respond to relative price changes, and the trade balance responds to changes in import and export values.
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Notes
The views expressed in this paper are those of the staff and do not necessarily reflect the views of the Executive Board of the IMF.