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- W2012135917 abstract "This paper starts with reviewing the existing literature on exchange rate uncertainty and trade flows. It then argues that potential costs of medium term uncertainty in exchange rates and competitiveness are likely to be much larger than that of exchange risk which has been the focus of the existing literature. Two measures of medium term exchange rate uncertainty are constructed. One is a weighted function of the magnitude of past movements in nominal exchange rates and the current deviation of the exchange rate from ‘equilibrium’, while the second depends on both the duration and the amplitude of misalignment from ‘equilibrium’ exchange rates. The empirical evidence reported in the paper suggests that when exchange rate uncertainty is defined over a medium term period it does affect adversely trade flows of the industrial countries under review, with the notable exception of the United States." @default.
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- W2012135917 title "Exchange rate uncertainty and foreign trade" @default.
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- W2012135917 doi "https://doi.org/10.1016/0014-2921(89)90095-0" @default.
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