Limiting Currency Volatility to Stimulate Goods Market Integration : A Price-Based Approach /

This paper studies the effect of instrumental and institutional stabilization of exchange rate volatility on the integration of goods markets. Rather than using data on volume of trade, this paper employs a 3-dimensional panel of prices of 95 very disaggregated goods (e.g., light bulbs) in 83 cities...

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Bibliografski detalji
Glavni autor: Parsley, David
Daljnji autori: Wei, Shang-Jin
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2001.
Serija:IMF Working Papers; Working Paper ; No. 2001/197
Online pristup:Full text available on IMF
Opis
Sažetak:This paper studies the effect of instrumental and institutional stabilization of exchange rate volatility on the integration of goods markets. Rather than using data on volume of trade, this paper employs a 3-dimensional panel of prices of 95 very disaggregated goods (e.g., light bulbs) in 83 cities around the world during 1990-2000. We find that the impact of an institutional stabilization-currency board or dollarization-promotes market integration far beyond an instrumental stabilization. Among them, long-term currency unions are more effective than more recent currency boards. All have room to improve relative to a U.S. benchmark.
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Opis:1 online resource (32 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students