Exchange Rates and Trade Balance Adjustment in Emerging Market Economies

Publication Date:

October 10, 2006

Electronic Access:

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Summary:

The paper finds that simple econometric specifications yield surprising rich and complex dynamics -- relative prices respond to the nominal exchange rate and pass-through effects, import and export volumes respond to relative price changes, and the trade balance responds to changes in import and export values.

Series:

Policy Papers

Notes:

The views expressed in this paper are those of the staff and do not necessarily reflect the views of the Executive Board of the IMF.

English

Publication Date:

October 10, 2006

Price:

Free

Format:

Paper

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