EconPapers    
Economics at your fingertips  
 

The Impact of Exchange Rate Fluctuations on European Union Trade

Andre Sapir, Khalid Sekkat and Axel A Weber

No 1041, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The impact of exchange rate fluctuations on international trade has long been a major concern for policy-makers. This is particularly the case in Europe, where countries trade extensively with each other. The crisis that began in the Summer of 1992 generated increased exchange rate fluctuations and, therefore, renewed concerns about consequences for trade inside the European Union. This report assesses the likely impact of the exchange rate crisis on trade flows inside and outside the Union. The analysis indicates the need to distinguish between short-term oscillations (i.e. volatility) and medium-term fluctuations (i.e. misalignment). We find that the recent ERM crisis is likely to have had some negative impact on trade within the region, but this impact is probably quite small.

Keywords: EMS; Exchange Rates; Misalignments; Trade; Volatility (search for similar items in EconPapers)
JEL-codes: F12 F31 L16 (search for similar items in EconPapers)
Date: 1994-11
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=1041 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
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: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1041

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1041

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-31
Handle: RePEc:cpr:ceprdp:1041