Open AccessPosted Content
Exchange Rates and Prices
837
TL;DR: In this article, the adjustment of relative prices to exchange rate movements is explained in an industrial organization approach, where the extent of absolute and relative price adjustment is shown to depend on market integration, product substitutability, relative number of domestic and foreign firms, and the market structure.
read more
Abstract: The adjustment of relative prices to exchange rate movements is explained in an industrial organization approach. Given labor costs in the respective currencies, exchange rate movements change costs for firms selling in the home market and thus disturb the industry equilibrium. The extent of absolute and relative price adjustment is shown to depend on market integration, product substitutability, the relative number of domestic and foreign firms, and the market structure. The impact of exchange rates on prices is illustrated in a variety of approaches including the Cournot, A. Dixit and J. Stiglitz_(1977), and S. Salop_(1979) models. Some empirical evidence is offered in support of the theory. Copyright 1987 by American Economic Association.
read more
Chat with Paper
AI Agents for this Paper
Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps
Citations
A Maximum Likelihood Cointegration Analysis of Canadian Lumber Exports
TL;DR: In this paper, Johansen's cointegration analysis was used to investigate causal relationships between Canadian lumber exports, U.S. lumber price, U.,S. housing starts and the Canada-U.S exchange rate.
33
The exchange rate and the trade balance
TL;DR: Exchange rate flexibility is commonly justified as an efficient method for adjusting the trade balance to some desirable net international capital flow as discussed by the authors, and fluctuations in a country's terms of trade or its saving-investment balance would continually upset its balance of payments equilibrium if the nominal exchange rate remained rigid.
33
Exchange rate pass-through, price discrimination, and US meat export prices
TL;DR: In this article, the impacts of relative exchange rates on US beef, pork and poultry export prices were quantified and the impact of GATT and NAFTA agreements on exchange rate pass-through was considered.
32
Asymmetric effects of exchange rate variations: An empirical analysis for four advanced countries
TL;DR: In this article, the authors investigated possible asymmetries in the reaction of export and import prices to changes in the exchange rate for 4 advanced countries between the 1981q1 and 2011q2 period.
32
•Posted Content
Exchange rates and trade adjustment in Taiwan and Korea
TL;DR: Furlong, Frederick T., Glick, Reuven; Hutchison, Michael; Moreno, Ramon as discussed by the authors, 1989.Exchange rates and trade adjustment in Taiwan and Korea, reports,San Francisco, U.S.Federal Reserve Bank of San Francisco,20
32