The Nominal Exchange Rate, the Terms of Trade, and the Economy
Abstract
In this chapter, we focus on several episodes that illustrate the impact of the monetary and real exchange rate effects on economies experiencing large exchange rate fluctuations. Three episodes focus on financial crises in the emerging markets. These large monetary disturbances had quite an impact in the region, as well as other emerging economies. Later on, we move on in time and focus on what one may characterize as a major disturbance to the terms of trade: the commodity super cycle. The final event that we focus on is in an interesting one, for it involves a period where a country adopts and then gradually begins to abandon a fixed exchange rate system.
Keywords ...
Get Economic Disturbances and Equilibrium in an Integrated Global Economy now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
