Series: IMF Working Papers
Author(s): Emine Boz , Gita Gopinath , and Mikkel Plagborg-Møller
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 13 November 2017
Keywords: Bilateral trade, Foreign exchange, Bayesian semiparametrics, dominant currency, exchange rate passthrough, hierarchical Bayes, panel data, trade elasticity, US dollar, exchange rate pass-through
We document that the U.S. dollar exchange rate drives global trade prices and volumes. Using a newly constructed data set of bilateral price and volume indices for more than 2,500 country pairs, we establish the fo...