Dominant Currencies and External Adjustment

Dominant Currencies and External Adjustment
Author: Gustavo Adler
Publisher: International Monetary Fund
Total Pages: 46
Release: 2020-07-20
Genre: Business & Economics
ISBN: 1513512153

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The extensive use of the US dollar when firms set prices for international trade (dubbed dominant currency pricing) and in their funding (dominant currency financing) has come to the forefront of policy debate, raising questions about how exchange rates work and the benefits of exchange rate flexibility. This Staff Discussion Note documents these features of international trade and finance and explores their implications for how exchange rates can help external rebalancing and buffer macroeconomic shocks.


Dominant Currencies and External Adjustment
Language: en
Pages: 46
Authors: Gustavo Adler
Categories: Business & Economics
Type: BOOK - Published: 2020-07-20 - Publisher: International Monetary Fund

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The extensive use of the US dollar when firms set prices for international trade (dubbed dominant currency pricing) and in their funding (dominant currency fina
Dominant Currency Paradigm: A New Model for Small Open Economies
Language: en
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Authors: Camila Casas
Categories: Business & Economics
Type: BOOK - Published: 2017-11-22 - Publisher: International Monetary Fund

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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
The Dominant Currency Financing Channel of External Adjustment
Language: en
Pages: 81
Authors: Camila Casas
Categories: Business & Economics
Type: BOOK - Published: 2023-08-11 - Publisher: International Monetary Fund

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We provide evidence of a new channel through which exchange rates affect trade. Using a novel identification strategy that exploits firms’ maturity structure
External Adjustment
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Pages: 64
Authors: Maurice Obstfeld
Categories: Balance of trade
Type: BOOK - Published: 2004 - Publisher:

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"Gross stocks of foreign assets have increased rapidly relative to national outputs since 1990, and the short-run capital gains and losses on those assets can a
Macroeconomics for Professionals
Language: en
Pages: 312
Authors: Leslie Lipschitz
Categories: Business & Economics
Type: BOOK - Published: 2019-01-23 - Publisher: Cambridge University Press

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Understanding macroeconomic developments and policies in the twenty-first century is daunting: policy-makers face the combined challenges of supporting economic