Exchange Rate Regimes, Specialization and Trave Volume

Michael B. Devereux () and Graham M Voss ()

No 222004, Working Papers from Hong Kong Institute for Monetary Research

Abstract: We develop a general equilibrium monetary model of endogenous specialization and international trade to examine the degree of specialization and trade volume under alternative exchange rate regimes. Where demand shocks are important, we demonstrate an increase in specialization, trade and welfare under coordinated fixed exchange rates, equivalent to a common currency, relative to flexible exchange rates. Where supply shocks are important, the effects on specialization and trade are smaller and ambiguous in direction, though the welfare effects are comparable to those for demand shocks.

Keywords: Exchange Rates; Common Currency Internaional Trade (search for similar items in EconPapers)
JEL-codes: E42 F33 F42 (search for similar items in EconPapers)
Date: 2004-11
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.hkimr.org/cms/upload/publication_app/pu ... 97_wp200422_text.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Exchange Rate Regimes, Specialization and Trade Volume (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:hkm:wpaper:222004

Access Statistics for this paper

More papers in Working Papers from Hong Kong Institute for Monetary Research
Contact information at EDIRC.
Series data maintained by HKIMR ().