Exchange Rate Regimes and Location

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 set and prices are optimally chosen. The paper finds that... READ MORE...

Publication date: June 1997
ISBN 9781451960822
$15.00

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