Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
964765 | Journal of International Money and Finance | 2006 | 19 Pages |
Abstract
How do exchange rate movements affect different sectors of an economy? We address this question in a simple general equilibrium model, stressing the different exposures of various sectors to foreign competition, an aspect ignored in earlier contributions. The impact of exchange rate shifts is highly heterogenous across sectors. While a depreciation leads to a substantial competitiveness and welfare gain for agents with a high exposure to foreign competition, agents facing mostly domestic competition are adversely affected.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Cédric Tille,