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On the trade impact of nominal exchange rate volatility

  • Tenreyro, Silvana

What is the effect of nominal exchange rate variability on trade? I argue that the methods conventionally used to answer this perennial question are plagued by a variety of sources of systematic bias. I propose a novel approach that simultaneously addresses all of these biases, and present new estimates from a broad sample of countries from 1970 to 1997. The answer to the question is: Not much.

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Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 82 (2007)
Issue (Month): 2 (March)
Pages: 485-508

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Handle: RePEc:eee:deveco:v:82:y:2007:i:2:p:485-508
Contact details of provider: Web page: http://www.elsevier.com/locate/devec

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