Transmission of external price disturbances and the composition of trade
TLDR
In this paper, the role of trade composition in the transmission of external price disturbances is investigated and it is shown that the effects of an increase in the price of imports on domestic prices and the trade balance depend on the cross price elasticity of demand and substitution between factors in the case of intermediate goods.About:
This article is published in Journal of International Economics.The article was published on 1980-08-01 and is currently open access. It has received 23 citations till now. The article focuses on the topics: Price elasticity of supply & Price elasticity of demand.read more
Citations
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The macroeconomics of trade liberalization
TL;DR: The authors analyzes the short-run, macroeconomic consequences of trade liberalization in LDCs and shows that linkages between the tradables and nontradables sectors, the effect of imported inputs on the economy's productive structure, and certain patterns of factor substitution can go a long way toward explaining the perverse, contractionary effects frequently seen in liberalization programs.
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Dutch disease — how much sickness, how much boon?
TL;DR: In this article, the authors set out a very simple neo-classical, small-country, open-economy model with nontradeable goods, tradeables other than oil, and oil and showed that the path of the non-tradeables price level in response to an oil shock may carry it through substantial overshooting before the final equilibrium is reached.
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Intermediate imports, the terms of trade, and the dynamics of the exchange rate and current account
TL;DR: In this paper, the macroeconomic effects of an increase in the price of an imported intermediate production input is studied. And the authors show that an intermediate price shock may lead to an appreciation of the exchange rate in both the short run and the long run, and is likely to occasion a current-account surplus.
Journal ArticleDOI
Offshore Commodity Hedging under Floating Exchange Rates
Stanley R. Thompson,Gary E. Bond +1 more
TL;DR: In this article, the standard commodity hedging framework is extended first to incorporate exchange rate uncertainty and second, to forward cover transactions in the foreign exchange market, and the implications of exchange rate movements and forward cover decisions for offshore commodity hedgers are illustrated using data relevant to hedging Australian export wheat on the Chicago Board of Trade.
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Economic openness, trade restrictions and external shocks: modelling short run effects in Sub-Saharan Africa
Jørn Rattsø,Ragnar Torvik +1 more
TL;DR: In this paper, a dependent-economy model is developed to compare export price shocks with and without import rationing, and the type of trade regime is shown to have quantitative importance in a CGE-model of Zimbabwe.
References
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Journal ArticleDOI
Expectations and Exchange Rate Dynamics
TL;DR: In this paper, the authors developed a theory of exchange rate movements under perfect capital mobility, a slow adjustment of goods markets relative to asset markets, and consistent expectations, and showed that along that path a monetary expansion causes the exchange rate to depreciate.
The life cycle hypothesis of saving: aggregate implications and tests
Ando Albert,Modigliani Franco +1 more
Journal ArticleDOI
The Demand for Money Revisited
TL;DR: In this paper, the authors focus on one aspect of the money market, the demand side, and provide an extensive review of the current state of the art concerning the demand for money.
Book ChapterDOI
The Exchange Rate And The Balance of Payments In The Short Run and in The Long Run: A Monetary Approach
TL;DR: The authors analyzes the role of momentary asset equilibrium and expectations in the determination of the exchange rate in the short run and the process of asset accumulation in determining the time path from momentary to long run equilibrium.
Posted Content
Engineering and econometric interpretations of energy-capital complementarity
Ernst R. Berndt,David O. Wood +1 more
TL;DR: In this article, an analytical and empirical interpretation of E-K complementarity consistent with basic microeconomics and with the manufacturing process engineering evidence of energy and capital substitutability is presented.