How Important is the Currency Denomination of Exports in Open-Economy Models?

Michael Dotsey and Margarida Duarte

Working Papers from University of Toronto, Department of Economics

Abstract: We show that standard alternative assumptions about the currency in which firms price export goods are virtually inconsequential for the properties of aggregate variables, other than the terms of trade, in a quantitative open-economy model. This result is in contrast to a large literature that emphasizes the importance of the currency denomination of exports for the properties of open-economy models.

Keywords: local currency pricing; producer currency pricing; international relative prices; exchange rates; nontraded goods; distribution services (search for similar items in EconPapers)
JEL-codes: F3 F41 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2009-11-20
New Economics Papers: this item is included in nep-cba, nep-int and nep-opm
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: How Important is the Currency Denomination of Exports in Open Economy Models? (2017)
Working Paper: How Important is the Currency Denomination of Exports in Open Economy Models? (2011)
Working Paper: How important is the currency denomination of exports in open-economy models? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:tor:tecipa:tecipa-383

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