haku: @indexterm DEVALUATION / yhteensä: 80
viite: 16 / 80
| Tekijä: | Corsetti, G. (et al.) |
| Otsikko: | Competitive devaluations: Toward a welfare-based approach |
| Lehti: | Journal of International Economics
2000 : JUN, VOL. 51:1, p. 217-241 |
| Asiasana: | Currency Devaluation Welfare economics Exchange rates Control International trade Economic theory Models |
| Kieli: | eng |
| Tiivistelmä: | This paper re-visits the international transmission of exchange-rate shocks in multi-country economy, providing choice-theoretic framework for the policy analysis of competitive evaluations. As opposed to the traditional view, devaluation by one country does not necessarily have an adverse beggar-thy-neighbor effect on its trading partners, because they can benefit from an improvement in their terms of trade. In addition, retaliatory devaluation need not be the optimal strategy for the neighbor countries, as the induced terms of trade deterioration can be large enough to offset the gains from defending their export market share. |
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