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The Impact of Exchange Rate Fluctuations on European Community Trade

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Author Info
Sapir, André
Khalid Sekkat
Axel A. Weber

Additional information is available for the following registered author(s):

Abstract

The impact of exchange rate fluctuations on international trade has long been a major concern for policy makers. This is particularly the case in Europe, where countries trade extensively with each other. The crisis that began in the Summer of 1992 generated increased exchange rate fluctuations and, therefore, renewed concerns about consequences for trade inside the Community. This report has attempted to infer the likely impact of the exchange rate crisis on trade flows inside and outside the Community. The analysis indicates the need to distinguish between short-term oscillations (i.e. volatility) and medium-term fluctuations (i.e. misalignment). We find that the recent ERM crisis is likely to have had some negative impact on trade within the region, but this impact is probably minor in size.

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Publisher Info
Paper provided by University of Bonn, Germany in its series Discussion Paper Serie B with number 282.

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Length: pages
Date of creation: 1994
Date of revision: Jun 1994
Handle: RePEc:bon:bonsfb:282

Contact details of provider:
Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 9221
Web page: http://www.bgse.uni-bonn.de/index.php?id=517

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Related research
Keywords: exchange rates; volatility; misalignments; trade; EMS;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F31 - International Economics - - International Finance - - - Foreign Exchange
L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

Statistics
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This page was last updated on 2009-11-25.


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