Exchange Rates and Trade Balance Adjustment in Emerging Market Economies

Date:	October 10, 2006
Electronic Access:	Full text
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 Paper
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.