The effect of exchange rate uncertainty on the prices and volume of international trade |
| |
Authors: | Peter Hooper Steven W. Kohlhagen |
| |
Affiliation: | Federal Reserve Board, Washington, DC 20551, U.S.A.;University of California at Berkeley, Berkeley, CA 94720, U.S.A.,;U.S. Treasury, U.S.A. |
| |
Abstract: | By specifying a model of differential risk-bearing by import demand and export supply sides of the market for traded goods, the theoretical impact of exchange risk on both equilibrium prices and quantities is analyzed. For several empirical cases of 1965–1975 U.S. and German trade it is found that exchange rate uncertainty has had a significant impact on prices but no significant effect on the volume of trade. These price effects support previous survey results on the currency denomination of export contracts, namely that with the exception of some U.S. imports, most trade is largely denominated in the exporter's currency. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|