The Vehicle Currency Invoicing Of Trade And Exchange Rate Pass Through
DOWNLOAD
Download The Vehicle Currency Invoicing Of Trade And Exchange Rate Pass Through PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get The Vehicle Currency Invoicing Of Trade And Exchange Rate Pass Through book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
The Vehicle Currency Invoicing Of Trade And Exchange Rate Pass Through
DOWNLOAD
Author : Daniel Stephen Dorrow
language : en
Publisher:
Release Date : 1987
The Vehicle Currency Invoicing Of Trade And Exchange Rate Pass Through written by Daniel Stephen Dorrow and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1987 with categories.
Patterns In Invoicing Currency In Global Trade
DOWNLOAD
Author : Emine Boz
language : en
Publisher:
Release Date : 2020-07-17
Patterns In Invoicing Currency In Global Trade written by Emine Boz and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020-07-17 with categories.
This paper presents the most comprehensive and up-to-date panel data set of invoicing currencies in global trade. It provides data on the shares of exports and imports invoiced in US dollars, euros, and other currencies for more than 100 countries since 1990. The evidence from these data confirms findings from earlier research regarding the globally dominant role of the US dollar in invoicing - despite the comparatively smaller role of the US in global trade - and the overall stability of invoicing currency patterns. The evidence also points to several novel facts. First, both the US dollar and the euro have been increasingly used for invoicing even as the share of global trade accounted for by the US and the euro area has declined. Second, the euro is used as a vehicle currency in parts of Africa, and some European countries have seen significant shifts toward euro invoicing. Third, as suggested by the dominant currency paradigm, countries invoicing more in US dollars (euros) tend to experience greater US dollar (euro) exchange rate pass-through to their import prices; also, their trade volumes are more sensitive to fluctuations in these exchange rates.
The International Role Of The Dollar And Trade Balance Adjustment
DOWNLOAD
Author : Linda S. Goldberg
language : en
Publisher:
Release Date : 2006
The International Role Of The Dollar And Trade Balance Adjustment written by Linda S. Goldberg and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with Business & Economics categories.
The pattern of international trade adjustment is affected by the continuing international role of the dollar and related evidence on exchange rate pass-through into prices. This paper argues that a depreciation of the dollar would have asymmetric effects on flows between the United States and its trading partners. With low exchange rate pass-through to U.S. import prices and high exchange rate pass-through to the local prices of countries consuming U.S. exports, the effect of dollar depreciation on real trade flows is dominated by an adjustment in U.S. export quantities, which increase as U.S. goods become cheaper in the rest of the world. Real U.S. imports are affected less because U.S. prices are more insulated from exchange rate movements -- pass-through is low and dollar invoicing is high. In relation to prices, the effects on the U.S. terms of trade are limited: U.S. exporters earn the same amount of dollars for each unit shipped abroad, and U.S. consumers do not encounter more expensive imports. Movements in dollar exchange rates also affect the international trade transactions of countries invoicing some of their trade in dollars, even when these countries are not transacting directly with the United States.
Exchange Rate Pass Through Currency Of Invoicing And Market Share
DOWNLOAD
Author : Michael B. Devereux
language : en
Publisher:
Release Date : 2015
Exchange Rate Pass Through Currency Of Invoicing And Market Share written by Michael B. Devereux and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with Currency question categories.
This paper investigates the impact of market structure on the joint determination of exchange rate pass- through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market-that is, exporting firms and importing firms. A model of monopolistic competition with heterogeneous firms has the following set of predictions: a) exchange rate pass-through should be non-monotonic and U-shaped in the market share of exporting firms, but monotonically declining in the market share of importers; b) exchange rate pass-through should be lower, the higher is local currency invoicing of imports; and c) producer currency invoicing should be related non-monotonically and U-shaped to exporter market share, and monotonically declining in importing firms' market share. We test these predictions using a new and large micro data set covering the universe of Canadian imports over a six-year period. The data strongly support all three predictions.
Export Performance Invoice Currency And Heterogeneous Exchange Rate Pass Through
DOWNLOAD
Author : Richard Fabling
language : en
Publisher:
Release Date : 2015
Export Performance Invoice Currency And Heterogeneous Exchange Rate Pass Through written by Richard Fabling and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2015 with categories.
Using comprehensive, shipment-level merchandise trade data for a small, open economy, we examine heterogeneity in exporters' exchange rate pass-through (ERPT) behaviour. We draw together two recent studies of ERPT, linking invoice currency decisions and firm performance to heterogeneity in ERPT. Like these studies, we find that the short-run reaction of export unit values to exchange rate fluctuations is significantly related to both invoice currency choice and exporter characteristics when these are analysed separately. However, we then show that when the two factors are jointly accounted for, the role of exporter characteristics largely disappears. That is, some firm types are more inclined to invoice in the producer currency, while others use either the local or a vehicle currency. In the short run, this translates into differences in exchange rate pass-through because of price rigidity in the invoice currency. Firm characteristics do not have an independent impact on pass-through beyond their effect on currency composition. Differences across invoice currencies diminish over time, but do not disappear, as prices adjust to reflect bilateral exchange rate movements.
Hedge Your Costs
DOWNLOAD
Author : Dennis Novy
language : en
Publisher:
Release Date : 2006
Hedge Your Costs written by Dennis Novy and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006 with categories.
Vehicle Currency Use In International Trade
DOWNLOAD
Author : Linda S. Goldberg
language : en
Publisher:
Release Date : 2005
Vehicle Currency Use In International Trade written by Linda S. Goldberg and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2005 with Foreign exchange categories.
"Although currency invoicing in international trade transactions is central to the transmission of monetary policy, the forces motivating the choice of currency have long been debated. We introduce a model wherein agents involved in international trade can invoice in the exporter's currency, the importer's currency, or a third-country vehicle currency. The model is designed to contrast the contribution of macroeconomic variability with that of industry-specific features in the selection of an invoice currency. We show that producers in industries with high demand elasticities are more likely than producers in other industries to display herding in their choice of currency. This industry-related force is more influential than local macroeconomic performance in determining producers' choices. Drawing on data on invoice currency use in exports and imports for twenty-four countries, we document that the dollar is the currency of choice for most transactions involving the United States. The dollar is also extensively used as a vehicle currency in international trade flows that do not directly involve the United States. Consistent with the results of our model, this last finding is largely attributable to international trade in reference-priced and organized-exchange traded goods. Although the magnitude of business-cycle volatility matters for invoicing of more differentiated products, it is less central for invoicing nondifferentiated goods"--NBER website
Dominant Currency Paradigm A New Model For Small Open Economies
DOWNLOAD
Author : Camila Casas
language : en
Publisher: International Monetary Fund
Release Date : 2017-11-22
Dominant Currency Paradigm A New Model For Small Open Economies written by Camila Casas and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017-11-22 with Business & Economics categories.
Most trade is invoiced in very few currencies. Despite this, the Mundell-Fleming benchmark and its variants focus on pricing in the producer’s currency or in local currency. We model instead a ‘dominant currency paradigm’ for small open economies characterized by three features: pricing in a dominant currency; pricing complementarities, and imported input use in production. Under this paradigm: (a) the terms-of-trade is stable; (b) dominant currency exchange rate pass-through into export and import prices is high regardless of destination or origin of goods; (c) exchange rate pass-through of non-dominant currencies is small; (d) expenditure switching occurs mostly via imports, driven by the dollar exchange rate while exports respond weakly, if at all; (e) strengthening of the dominant currency relative to non-dominant ones can negatively impact global trade; (f) optimal monetary policy targets deviations from the law of one price arising from dominant currency fluctuations, in addition to the inflation and output gap. Using data from Colombia we document strong support for the dominant currency paradigm.
Trade Invoicing Currency And First Stage Exchange Rate Pass Through
DOWNLOAD
Author : Christian Gillitzer
language : en
Publisher:
Release Date : 2016
Trade Invoicing Currency And First Stage Exchange Rate Pass Through written by Christian Gillitzer and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016 with categories.
Exchange Rate Pass Through And Currency Invoicing
DOWNLOAD
Author : Craig R. Parsons
language : en
Publisher:
Release Date : 2007
Exchange Rate Pass Through And Currency Invoicing written by Craig R. Parsons and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2007 with categories.
Exporter's price-setting behaviour and currency invoicing play a key role in the literature on the new open-economy macroeconomics. This paper estimates exchange rate pass-through coefficients for the exports of four ASEAN countries: Indonesia, Malaysia, the Philippines and Thailand. In addition, previous estimates of pass-through as well as invoicing behaviour in East Asia are discussed in the context of regional integration. The new pass-through coefficients are estimated under two alternate specifications for up to 34 goods for each of the four ASEAN countries destined for up to 13 major markets. The results suggest: (a) little pass-through is occurring in Southeast Asia and (b) this lack of pass-through is more likely attributable to the fact that they are small countries in a relatively integrated market, rather than evidence of pricing to market. The implications for regional monetary integration of this apparently low degree of pass-through are detailed.