Exchange Rates and Trade Balance Adjustment in Emerging Market Economies

Publication Date:

October 10, 2006

Electronic Access:

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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.


Policy Papers


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.


Publication Date:

October 10, 2006



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