Trade Openness, Economic Size, and Macroeconomic Volatility: Theory and Empirical Evidence
نویسندگان
چکیده
منابع مشابه
Financial Openness and Macroeconomic Volatility
We analyze the implications of financial openness to macroeconomic volatility in a small open economy. The volatility of major macroeconomic aggregates shows non-monotonic pattern with respect to the degree of financial openness in the model without domestic financial frictions. The introduction of domestic financial frictions makes the volatility patterns flatter. Our model explains the lack o...
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Exchange rates differ considerably with respect to exchange rate volatility, while they are very similar with respect to the macroeconomic fundamentals — the well known exchange rate disconnect puzzle. The microeconomic structure of foreign exchange markets, especially the existence of noise traders, may be responsible for the excessive volatility in flexible exchange rate regimes. The entry of...
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ژورنال
عنوان ژورنال: Journal of Economic Integration
سال: 2006
ISSN: 1225-651X,1976-5525
DOI: 10.11130/jei.2006.21.2.254