A long empirical literature has examined the idea that, in the absence of hedging mechanisms, currency risk should have an adverse effect on the export volumes of risk averse exporters. But there are no clear conclusions from this literature, and the current consensus seems to be that there is at most a weak negative effect of exchange rate volatility on aggregate trade flows. However, most of this literature examines the impact of exchange rate volatility...
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INFORMATION
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2011/03/01
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Document de travail de recherche sur les politiques
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WPS5590
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1
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1
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2011/03/01
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Disclosed
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Over the hedge : exchange rate volatility, commodity price correlations, and the structure of trade
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exchange rate volatility