No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect

No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect
Theoretical models on the relationship between prices and exchange rates predict that the magnitude of expenditure switching affects the optimal choice of exchange rate regime. Focusing on the transmission of terms-of-trade shocks to domestic real variables we document that the magnitude of the expenditure switching effect is positively... READ MORE...

Publication date: September 2018
ISBN 9781484378236
$18.00

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Publication date: September 2018

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