search query: @indexterm welfare / total: 396
reference: 169 / 396
| Author: | Bacchetta, P. Wincoop, E. van |
| Title: | Does exchange-rate stability increase trade and welfare? |
| Journal: | American Economic Review
2000 : DEC, VOL. 90:5, p. 1093-1109 |
| Index terms: | EXCHANGE RATES TRADE WELFARE |
| Language: | eng |
| Abstract: | This paper develops a simple general-equilibrium framework to study the effect of the exchange-rate system on trade and welfare. An important feature of the model is deviations from purchasing-power parity, caused by rigid price setting in buyers' currency. In a benchmark model with separable preferences and only monetary shocks, trade is unaffected by the exchange-rate system, consistent with most evidence. |
SCIMA