Exchange rate dynamics in a model of pricing-to-market

By Caroline M Betts, M. Devereux. 2000

769 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/57bf348bdc3850de08e285c0d9ffc48151a1bda2

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Citations in the corpus

Endogenous Exchange Rate Pass-through when Nominal Prices are Set in Advance (2004, neutral): “While firms’ decisions with respect to currency of pricing depend on the distribution of exchange rates and marginal costs, these distributions in 3 See for example, Betts and Devereux (1996, 2000), Devereux and Engel (2000), Tille (2000), and Lane (2001).”
Price Stability in Open Economies (2003, background): “Under ex-ante commitment, the policymaker maximizes the welfare function Wt, as in (6), with the information set at time t − 1, under the sequence of constraints as in (8), implied by optimal price-setting for period t onwards.”
Current Account and Real Exchange Rate Dynamics in the G-7 Countries (2002, neutral): “In the models by Betts and Devereux (2000) and Chari et al. (2002), monetary shocks induce short-run fluctuations in the real exchange rate, via the pricing-to-market effect; however, such effects dissipate in the long run.”
How do different exporters react to exchange rate changes? Theory, empirics and aggregate implications (2009, neutral): “() =    ()()  − () (14)”
The new open economy macroeconomics: a survey (2001, background): “ Betts and Devereux (2000a) show that exchange rate volatility is an inverse function of the consumption elasticity of money demand.”
The exchange rate in a dynamic-optimizing business cycle model with nominal rigidities: a quantitative investigation (2001, positive): “A contribution by Betts and Devereux (2000) shows rate movements into prices business cycle model that is solved numerically.”
A new look at pass-through (2008, background): “Betts and Devereux (2000) and Devereux and Engel (2003) note that the optimal monetary policy and exchange rate regime in Obstfeld and Rogoff new open economy models is different if import prices are sticky in the price of the consumer not the producer.”
Distribution costs and real exchange rate dynamics during exchange-rate-based stabilizations (2003, neutral): “10 Recent open economy models that emphasize price stickiness include Obstfeld and Rogoff (1995), Chari, Kehoe and McGrattan (2000), and Betts and Devereux (2000) .”
Nonlinear dynamics in deviations from the law of one price: a broad-based empirical study (2004, background): “Betts and Devereux, 2000; Bergin and Feenstra, 2001; Sarno, 2001). L. Sarno et al. / Journal of International Money and Finance 23 (2004) 1–25 2”
New Directions for Stochastic Open Economy Models (2000, methodology): “In innovative theoretical work, Betts and Devereux (1996, 1998) incorporated PTM cum LCP (PTM-LCP) into a model based on Obstfeld and Rogoff (1995), thereby showing a tractable way to wean that class of models from assuming the law of one price for tradables.”