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dc.contributor.authorAuboin, Marcen_US
dc.contributor.authorRuta, Michelen_US
dc.date.accessioned2011-11-22en_US
dc.date.accessioned2012-04-26T12:02:39Z-
dc.date.available2012-04-26T12:02:39Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/57610-
dc.description.abstractThis paper surveys a wide body of economic literature on the relationship between currencies and trade. Specifically, two main issues are investigated: the impact on international trade of exchange rate volatility and of currency misalignments. On average, exchange rate volatility has a negative (even if not large) impact on trade flows. The extent of this effect depends on a number of factors, including the existence of hedging instruments, the structure of production (e.g. the prevalence of small firms), and the degree of economic integration across countries. Exchange rate misalignments are predicted to have short-run effects in models with price rigidities, but the exact impact depends on a number of features, such as the pricing strategy of firms engaging in international trade and the importance of global production networks. This effect is predicted to disappear in the long-run, unless some other distortion characterizes the economy. Empirical results confirm that short-run effects can exist, but their size and persistence over time are not consistent across different studies.en_US
dc.language.isoengen_US
dc.publisherWorld Trade Organization, Economic Research and Statistics Div. Genevaen_US
dc.relation.ispartofseriesWTO Staff Working Paper ERSD-2011-17en_US
dc.subject.jelF10en_US
dc.subject.jelF31en_US
dc.subject.jelF55en_US
dc.subject.jelO19en_US
dc.subject.jelG21en_US
dc.subject.jelG32en_US
dc.subject.ddc330en_US
dc.subject.keywordexchange ratesen_US
dc.subject.keywordvolatilityen_US
dc.subject.keywordmisalignmentsen_US
dc.subject.keywordinternational tradeen_US
dc.subject.stwWechselkursen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwVolatilitäten_US
dc.titleThe relationship between exchange rates and International Trade: A review of economic literatureen_US
dc.typeWorking Paperen_US
dc.identifier.ppn672646870en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:WTO Staff Working Papers, Economic Research and Statistics Division, WTO

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