Does Exchange Rate Stability Increase Trade and Welfare

By Philippe Bacchetta, Eric van Wincoop. 2000

353 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/c5b27741ae5b40c3d18f5a7735d73c34d79a48ba

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

Exchange Rate Pass-Through, Exchange Rate Volatility, and Exchange Rate Disconnect (2002, neutral): “Compared to other papers in the literature (Bacchetta and Van Wincoop, 2000, Chari et al. 2000), we make the assumption of separability in consumer preferences over consumption, real balances, and labor supply.”
Why do Consumer Prices React Less than Import Prices to Exchange Rates (2002, background): “Some investigators, such as Betts and Devereux (1996) and ourselves ( Bacchetta and van Wincoop 2000 ), have used evidence of limited pass-through to consumer prices and the resulting close relationship between nominal and real exchange rates, as a justi e cation for models with consumer currency pr”
The Endogeneity of the Exchange Rate as a Determinant of FDI: A Model of Money, Entry, and Multinati (2004, neutral): “To see that this is true here also, one can examine the wage relation for each country’s representative consumer (equation (5) and its Foreign-country counterpart, W ∗ t = P ∗ t C ∗ρ t ), along with the formula for the real exchange rate (10): Wt = κPtC ρ t = κPtC ρ t κP ∗ t C ∗ρ t κP ∗ t C ∗ρ t = S”
Exchange Rate Volatility and Productivity Growth: The Role of Financial Development (2009, neutral): “The e¤ect, however, does not appear to be large and it is even less clear that the resulting trade expansion has any great impact on welfare (see Krugman, 1987, or Bacchetta and van Wincoop, 2000).”
Monetary Policy Rules in the Open Economy: Effects on Welfare and Business Cycles (2002, neutral): “(In the NOEM literature, only McCallum and Nelson, 1999, and Batini and Nelson, 2000, compare alternative policy rules using models with UIP shocks, but these authors do not compute welfare.) The present model is solved using Sims' (2000) new method that is based on a quadratic approximation of the ”