Sterling Misalignment and British Trade Performance
In: Misalignment of Exchange Rates
AbstractIn the first part of this paper I use a small macroeconomic model to examine the causes of the appreciation of sterling during 1979-81. Oil takes about half of the blame. Contractionary monetary policies alone do not seem sufficient to explain the rest, but when coupled with adverse supply-side developments they seem capable of explaining both the appreciation and the associated increase in unemployment. In the second part of the paper I examine the possibility that temporary fluctuations in the real exchange rate may have a permanent effect on British export performance. Using data from 1900 to the present I find evidence that is consistent with "hysteresis" effects on both the demand and supply side of the export market.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. 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.
This chapter was published in:
This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 8054.
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Other versions of this item:
- Bean, Charles R, 1987. "Sterling Misalignment and British Trade Performance," CEPR Discussion Papers 177, C.E.P.R. Discussion Papers.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Richard Baldwin, 1988.
"Hysteresis In Import Prices: The Beachhead Effect,"
NBER Working Papers
2545, National Bureau of Economic Research, Inc.
- C.J.M. Kool & A. Lammertsma, 2004. "Inflation Persistence under Semi-Fixed Exchange Rate Regimes:The European Evidence 1974-1998," Working Papers 04-04, Utrecht School of Economics.
- Gottfries, Nils, 1999.
"Markets Shares, Financial Constraints, and Pricing Behavior in the Export Market,"
Working Paper Series
1999:15, Uppsala University, Department of Economics.
- Gottfries, Nils, 2002. "Market Shares, Financial Constraints and Pricing Behaviour in the Export Market," Economica, London School of Economics and Political Science, vol. 69(276), pages 583-607, November.
- Gottfries, N., 1999. "Market Shares, Financial Constraints, and Pricing Behavior in the Export Market," Papers 1999:15, Uppsala - Working Paper Series.
- Barry Eichengreen & Douglas A. Irwin, 1996.
"The Role of History in Bilateral Trade Flows,"
NBER Working Papers
5565, National Bureau of Economic Research, Inc.
- Juha Tervala, 2011.
"Learning by Devaluating: A Supply-Side Effect of Competitive Devaluation,"
67, Aboa Centre for Economics.
- Tervala, Juha, 2013. "Learning by devaluating: A supply-side effect of competitive devaluation," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 275-290.
- Clemens Kool & Alex Lammertsma, 2005. "Inflation Persistence under Semi-Fixed Exchange Rate Regimes: The European Evidence 1974â€“1998," Open Economies Review, Springer, vol. 16(1), pages 51-76, January.
- Park, Mi-Hee & Koo, Won W., 2005. "Recent Development in Infrastructure and Its Impact on Agricultural and Non-agricultural Trade," 2005 Annual meeting, July 24-27, Providence, RI 19525, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Richard Baldwin, 1988. "Some Empirical Evidence on Hysteresis in Aggregate US Import Prices," NBER Working Papers 2483, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.