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 analysis of international trade including the monetary factor deals with static equilibrium and linear models. We conceived a macroeconomic model of the world economy and used this model to make three simulation experiments. The conclusion of these experiments is that a broader exchange rate band has a negative impact over the volume of world trade. This conclusion is confirmed by the historical analysis.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Publisher Info
Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.
Find related papers by JEL classification: F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Marco Valente, 1998.
"Laboratory for Simulation Development,"
DRUID Working Papers
98-5, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
[Downloadable!]