One of the most compelling pieces evidence for monetary non-neutrality is Mussa puzzle: break in regime when Bretton Woods system broke down increased volatility not only nominal exchange rate but real rate. Using data covering forty-four countries from 1954 to 2019, I find that puzzle generalizable: any a changes also This provides further non-neutrality.

OS/as S. Batten is a senior economist and Michael 11 Be/on gia is an economist at the Federal Resenie Bank of St Louis. Sarah R. Driver provided research assistance. ‘Chattin and Lee (1983), p. 19. ‘Schuh (1984), p. 244. Other papers drawing a similar causal relationship between exchange rates and agricultural exports include Chambers and Just (1982), Tweeten (1983) and Hathaway (1983). The pro...

This paper investigates the incentives to commit price or retain price flexibility in a model in which exporting firms face different degrees of exchange rate uncertainty. The result shows that introducing exchange rate uncertainty can lead to the endogenous emergence of an unique leader-follower equilibrium; which firm emerges as price leader depends on the substitutability of products, the ma...

The microstructural approach to the exchange rate market claims that order flows on a currency can accurately reflect the short-run dynamics its exchange rate. In this paper, instead of focusing on order flows analysis we employ an alternative microstructural approach: we focus on investors’ sentiment on a given exchange rate as a possible predictor of its future evolution. As a proxy of invest...

In 1950, Orcutt argued that ‘trade flows respond to changes in nominal exchange rate faster than relative prices’. Subsequently empirical studies have tested this hypothesis and found mixed results. The experience of Sri Lanka, where it has been encountering a relentless fall is the share its exports global trade during past decade, provides an ample motivation test ascertain which policy instr...

In this paper we investigate the empirical pass-through of the nominal exchange rates to the consumer price indexes (CPIs) for five Eurozone countries vis-à-vis the United States. There are significant structure changes in these countries during the European integration. The Eurozone CPIs have been insulated from the exchange rate shocks since that integration; on the other hand, we find that t...

regarding the importance and high proportion of iranian manufacturing industries' export in nonoil export basket, and their impact on economic growth, it is essential that effective factors on the manufacturing industries' export be investigated. this paper investigates the impact of human capital on the export of iranian industries, using a panel data set of 2-digit isic manufacturing industri...