Exchange Rate Volatility and Trade Flows in Small Open Economies
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This book attempts to effectively investigate the connection between exchange rate volatility and trade flows in small open economies among several econometric methods, while trying to highlight the complexity of this relationship. We also evaluate whether these results change substantially in terms of sign and magnitude when subtracting energy's share or when accounting for the current economic crisis. The obtained findings reveal that this field controversy may be a reflect of ups and downs energy price movements, switching regime and leverage effects.
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