In international macroeconomics, it is typically assumed that the exchange rate between two trading partners matters most for trade prices, quantities, and terms of trade. This column presents evidence supporting an alternate view – that a country’s exchange rate relative to the US dollar is most important. This is because invoicing in dollars is common, even when the US is not part of a transaction. The findings have important implications for the conduct of monetary and exchange rate policies.
Related
Most Read
-
Krugman
-
Terzi
-
Goldstein, Levy Yeyati, Sartorio
-
Aghion, Artus, Oliu-Barton, Pradelski
-
Daly, Chankova
-
Eichengreen, O'Rourke
-
Burgess, Sievertsen
-
Mitze, Kosfeld, Rode, Wälde
-
Heldring, Robinson
-
Eichengreen
Blogs&Reviews
-
Hebous
-
Gylfason
-
Beetsma, Schuknecht
-
Bouwens
-
Gaspar, Larraín Bascuñán
Vox eBooks
Don't Miss
Arezki, Djankov, Panizza
Bartsch, Bénassy-Quéré, Corsetti, Debrun
Scheuer
Events
-
20 - 20 April 2021 / Webinar /
-
20 - 20 April 2021 / Online / German Development Institute, the Centre for Economic Performance at the London School of Economics (CEP-LSE), and the Centre for Economic Policy Research (CEPR)
-
20 - 21 April 2021 / Online / The Research Group of the Basel Committee, jointly with Deutsche Bundesbank and CEPR
-
21 - 23 April 2021 / Online /
-
21 - 21 April 2021 / Online /
CEPR Policy Research
-
Gobillon, Solignac
-
Giglio, Maggiori, Stroebel, Weber
-
Summers, Fatás
-
Favero, Galasso
-
Butt, Churm, McMahon, Morotz, Schanz
-
Eichengreen, Avgouleas, Poiares Maduro, Panizza, Portes, Weder di Mauro, Wyplosz, Zettelmeyer
-
Baldwin, Beck, Bénassy-Quéré, Blanchard, Corsetti, De Grauwe, den Haan, Giavazzi, Gros, Kalemli-Ozcan, Micossi, Papaioannou, Pesenti, Pissarides , Tabellini, Weder di Mauro
-
Baldwin, Nakatomi
-
Thimann
-
Goodhart, Perotti