Exchange Rate Regimes and Location:
This paper investigates the effects of fixed versus flexible exchange rates on firms' location choices and on countries' specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
1997
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Schriftenreihe: | IMF Working Papers
Working Paper No. 97/69 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper investigates the effects of fixed versus flexible exchange rates on firms' location choices and on countries' specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are set and prices are optimally chosen. The paper finds that countries are more specialized under flexible than fixed rates, and that the pattern of specialization is not uniquely defined by trade models but depends also on the exchange rate regime. The adoption of fixed exchange rates endogenously increases the desirability of this currency area by reducing the shock asymmetry. These results also shed light on the effects of exchange rate variability on trade |
Beschreibung: | 1 Online-Ressource (32 p) |
ISBN: | 1451960824 9781451960822 |
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spelling | Ricci, Luca Antonio Verfasser aut Exchange Rate Regimes and Location Ricci, Luca Antonio Washington, D.C International Monetary Fund 1997 1 Online-Ressource (32 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 97/69 This paper investigates the effects of fixed versus flexible exchange rates on firms' location choices and on countries' specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are set and prices are optimally chosen. The paper finds that countries are more specialized under flexible than fixed rates, and that the pattern of specialization is not uniquely defined by trade models but depends also on the exchange rate regime. The adoption of fixed exchange rates endogenously increases the desirability of this currency area by reducing the shock asymmetry. These results also shed light on the effects of exchange rate variability on trade Online-Ausg http://elibrary.imf.org/view/IMF001/02193-9781451960822/02193-9781451960822/02193-9781451960822.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Ricci, Luca Antonio Exchange Rate Regimes and Location |
title | Exchange Rate Regimes and Location |
title_auth | Exchange Rate Regimes and Location |
title_exact_search | Exchange Rate Regimes and Location |
title_exact_search_txtP | Exchange Rate Regimes and Location |
title_full | Exchange Rate Regimes and Location Ricci, Luca Antonio |
title_fullStr | Exchange Rate Regimes and Location Ricci, Luca Antonio |
title_full_unstemmed | Exchange Rate Regimes and Location Ricci, Luca Antonio |
title_short | Exchange Rate Regimes and Location |
title_sort | exchange rate regimes and location |
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