Exchange Rate Policy and Firm Heterogeneity
Masashige Hamano
(1)
,
Francesco Pappadà
(2, 3, 4)
Francesco Pappadà
- Function: Author
- PersonId: 1285698
- IdHAL: francesco-pappada
- ORCID: 0000-0002-2764-4792
Abstract
This paper examines the exchange rate policy in a tractable framework with heterogeneous firms, incomplete financial markets and nominal rigidities. External demand shocks generate exchange rate movements leading to uncertainty in the labor demand of exporter firms. When exporter firms are homogeneous in terms of productivity, a monetary policy response to external demand shocks stabilizes the export market and improves welfare, thus providing a rationale for managed exchange rate policies.
Domains
Economics and FinanceSubmission Type | Notice |
---|---|
Deposit type | Journal articles |
Title |
en
Exchange Rate Policy and Firm Heterogeneity
|
Abstract |
en
This paper examines the exchange rate policy in a tractable framework with heterogeneous firms, incomplete financial markets and nominal rigidities. External demand shocks generate exchange rate movements leading to uncertainty in the labor demand of exporter firms. When exporter firms are homogeneous in terms of productivity, a monetary policy response to external demand shocks stabilizes the export market and improves welfare, thus providing a rationale for managed exchange rate policies.
|
Authors |
Masashige Hamano
1
, Francesco Pappadà
2, 3, 4
1
Waseda University [Tokyo, Japan]
( 168249 )
- 1-104 Totsukamachi, Shinjuku-ku, Tokyo, 169-8050, JAPAN
- Japan
2
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
3
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
4
Banque de France -
Banque de France
( 183299 )
- France
|
Science popularization |
No
|
Peer-reviewed |
Yes
|
Audience |
International
|
Target audience |
Scientists
|
Fulltext language |
English
|
Journal |
|
Publication date |
2023-09
|
Volume |
71
|
Number |
3
|
Page number |
759-790
|
JEL thesaurus |
|
Domain |
|
DOI | 10.1057/s41308-022-00188-2 |
UT key WOS | 000864309700001 |
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