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Exchange Rate Pass-Through, the Terms of Trade and the Trade Balance

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Author Info
Murphy, E.
Iapadre, L.
Abstract

We show that if exchange rate pass-through is incomplete, a country's terms of trade may move in the same or contrary direction to the nominal value of its currency. Moreover, when the degree of pass-through is endogenous, the trade balance must improve if the currency devalues.

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Publisher Info
Paper provided by National University of Ireland, Galway - Department of Economics in its series Department of Economics with number 34.

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Length: 19 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:galeco:34

Contact details of provider:
Postal: National University of Ireland, Galway - Department of Economics.
Phone: +353-91 524411 ext. 2501
Fax: +353-91 524130
Web page: http://economics.nuigalway.ie/
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Related research
Keywords: TRADE ; EXCHANGE RATE ; INTERNATIONAL ECONOMY;

Find related papers by JEL classification:
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
F31 - International Economics - - International Finance - - - Foreign Exchange
F10 - International Economics - - Trade - - - General

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This page was last updated on 2009-12-16.

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