Centro de Documentacion de Fundación MAPFRE - Devaluation, sticky import prices and trade balance adjustment

MAP20070010578

Devaluation, sticky import prices and trade balance adjustment / by Philippe Bacchetta and Stefan Gerlach. — Barcelona : ESADE, 1990

24 p. ; 30 cm . — (Papers ESADE ; 40)

Sumario: The devaluation of a currency is usually assumed to improve the trade balance. In the short run, however, there may be a temporary worsening in the nominal trade balance, a J-curve effect, due to a quick adjustment in import prices and a slow reaction of import quantities. Recent empirical evidence, however, shows that import prices do adjust slowly to exchange rate changes

1. Política de precios . 2. Gestión financiera . 3. Investigación comercial . 4. Precios . 5. Exportación e importación . 6. Comercio internacional . I. Gerlach, Stefan . II. Escuela Superior de Administración y Dirección de Empresas . III. Papers ESADE ; 40 . IV. Title.