This paper compares real and nominal foreign exchangevolatility effects on exports. Using a flexible lag version of theGoldstein-Khan two-country imperfect substitutes model forbilateral trade, we identify the overall effect into both a timingas well as a size impact. We find that the size impact offorecasted foreign exchange volatility does not vary accordingto the measure used in terms of magnitude and direction.However, there are very different timing effects, when wecompare real and nominal foreign exchange rate volatility.
Ireland ->
University College Dublin ->
Business Research Collection
Ireland ->
University College Dublin ->
School of Business
Ireland ->
University College Dublin ->
College of Business
John Cotter,
Donal Bredin
