Brown Bag Seminar: "Exchange-Rate Regimes and Exporter-Importers"

Speaker:  Cosimo Petracchi - Brown University
  Thursday, December 1, 2022 at 12:00 PM


I characterize exchange-rate regime breaks for thirty countries between 1960 and 2019, and I document that
while they affect the volatilities of nominal and real exchange rates they do not change the volatilities of other real
macro fundamentals (output, consumption, investment, and net exports). This is true even in countries in which
exports and imports represent a large component of gross domestic product. I propose a model with exporterimporters
and segmented global currency markets. The model matches the behavior of nominal and real exchange
rates and real macro fundamentals across exchange-rate regimes, even for economies in which the sum of exports
and imports is more than 100% of gross domestic product.

Programme Director
Maurizio Malpede

Publication date
November 17, 2022