Series: IMF Working Papers
Author(s): International Monetary Fund
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 January 2005
Keywords: Real exchange rate volatility, trade costs, exchange rate, real exchange rate, exchange rate volatility, International Finance: General, Macroeconomic Aspects of International Trade and Finance: General,
This paper examines the impact of trade costs on real exchange rate volatility. The channel is examined by constructing a two-country Ricardian model of trade, based on the work of Dornbusch, Fischer, and Samuelson...