Economic Consequences of Dominant Currencies
Friday, Jan. 4, 2019 10:15 AM - 12:15 PM
- Chair: Gita Gopinath, Harvard University
Dollar Invoicing and the Heterogeneity of Exchange Rate Pass-Through
AbstractWe show empirically that the variation across country pairs in exchange rate pass-through and trade elasticity is meaningfully explained by the dollar's dominance as invoicing currency. We use a hierarchical Bayesian approach to directly and flexibly model pass-through heterogeneity conditional on the invoicing share. We estimate that the importer's country-level dollar invoicing share explains 15% of the overall variance across trading pairs in dollar exchange rate pass-through into bilateral prices.
Exports and Invoicing: Evidence from the 2015 Swiss CHF Appreciation
AbstractExplores the differential cross-sectional response of border prices and export values tied to currency of invoicing following the Swiss CHF appreciation in 2015.
- F0 - General