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dc.contributor.authorGoldberg, Lindaen_US
dc.contributor.authorTille, Cédricen_US
dc.date.accessioned2012-08-17T14:25:01Z-
dc.date.available2012-08-17T14:25:01Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/60543-
dc.description.abstractThe pattern of international trade adjustment is affected by the continuing international role of the dollar and related evidence on exchange rate pass-through to prices. This paper argues that a depreciation of the dollar would have asymmetric effects on flows between the United States and its trading partners. With low exchange rate pass-through to U.S. import prices and high exchange rate pass-through to the local prices of countries consuming U.S. exports, the effect of dollar depreciation on real trade flows is dominated by an adjustment in U.S. export quantities, which increase as U.S. goods become cheaper in the rest of the world. Real U.S. imports are affected less because U.S. prices are more insulated from exchange rate movements—pass-through is low and dollar invoicing is high. In relation to prices, the effects on the U.S. terms of trade are limited: U.S. exporters earn the same amount of dollars for each unit shipped abroad, and U.S. consumers do not encounter more expensive imports. Movements in dollar exchange rates also affect the international trade transactions of countries invoicing some of their trade in dollars, even when these countries are not transacting directly with the United States.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of New York New York, NYen_US
dc.relation.ispartofseriesStaff Report, Federal Reserve Bank of New York 255en_US
dc.subject.jelF3en_US
dc.subject.jelF4en_US
dc.subject.ddc330en_US
dc.subject.keywordexchange rate, pass-through, international role of the dollar, trade balance, current account, vehicle currencyen_US
dc.subject.stwExchange Rate Pass-Throughen_US
dc.subject.stwAbwertungen_US
dc.subject.stwAußenhandelseffekten_US
dc.subject.stwHandelsbilanzen_US
dc.subject.stwLeistungsbilanzen_US
dc.subject.stwUSAen_US
dc.titleThe internationalization of the dollar and trade balance adustmenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn519343441en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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