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Title:Beggar-thy-neighbor or beggar-thyself? The income effect of exchange rate fluctuations PDF Logo
Authors:Tille, Cédric
Issue Date:2000
Series/Report no.:Staff Report, Federal Reserve Bank of New York 112
Abstract:This paper analyzes the impact of exchange rate fluctuations when they are only partially passed through to consumer prices. We show that an exchange rate depreciation does not necessarily have a beggar-thy-neighbor effect and may in fact have an opposite, or beggar-thyself, effect. The direction of the welfare effect depends on who owns the firms importing goods from producers and selling them to consumers, an issue that has not been explored in the earlier literature.
Subjects:beggar-thy-neighbor, imports distribution
Document Type:Working Paper
Appears in Collections:Staff Reports, Federal Reserve Bank of New York

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