search query: @indexterm exchange rates / total: 1242
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| Author: | Hoffman, M. Holtemöller, O. |
| Title: | Transmission of nominal exchange rate changes to export prices and trade flows and implications for exchange rate policy |
| Journal: | Scandinavian Journal of Economics
2010 : VOL. 112:1, p. 127-161 |
| Index terms: | exchange rates welfare policy exports prices trade models European Union |
| Freeterms: | non-EMU countries elasticity of substitution |
| Language: | eng |
| Abstract: | This paper deals with how the welfare ranking of fixed and flexible (hereafter as: fix-and-flx) exchange rate (here as: e-rate/e-rates) regimes in a New Open Economy Macroeconomics model is dependent on the interplay btw. the degree of e-rate pass-through and the elasticity of substitution btw. home and foreign goods. Identified are combinations of these two parameters for which fix-and-flex e-rates are superiour as to welfare as measured by a representative household's utility level. The two parameters are estimated for six non-EMU European countries, that is, Czech Republic, Hungary, Poland, Slovakia, Sweden, and the U.K. using a heterogeneous dynamic panel approach. |
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