haku: @author Dornbusch, R. / yhteensä: 13
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| Tekijä: | Dornbusch, R. |
| Otsikko: | Exchange rates and prices. |
| Lehti: | American Economic Review
1987 : MAR, VOL. 77:1, p. 93-106 |
| Asiasana: | PRICES EXCHANGE RATES PRICING |
| Kieli: | eng |
| Tiivistelmä: | The adjustment of relative prices to exchange rate movement is explained in an industrial organizational approach, using various models. It is suggested that the exchange rate movement and the less-than-fully flexible money wage interact to produce a cost shock for some firms in an industry - foreign firms in the home market and home firms abroad - and thus bring about the need for an industry wide adjustment in prices. The extent of price adjustment, given labour costs in the respective currencies, is shown to depend on product substitutability the relative number of domestic and foreign firms and market structure. |
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