Abstracts of working papers
#0001 -- David Andolfatto, Scott Hendry, Kevin Moran, and Guang-Jia Zhang (June 1999, revised January 2000)
Persistent liquidity effects following a change in monetary policy regime (PDF)
#0002 - Ayoub Yousefi - February 2000
Merchandise trade balances of less developed countries and exchange rate of the U.S. dollar: cases of Iran, Venezuela & Saudi Arabia
This study examines the effects of changes in the exchange rate of the U.S. dollar on the trade balances of three oil-exporting countries, Iran, Venezuela, and Saudi Arabia. An exchange rate pass-through model is applied to allow changes in the exchange rate of the dollar to affect prices of traded goods. We found that changes in the effective exchange rate of the dollar pass through partially to these countries' import prices. For the export prices, under the floating exchange rate system depreciation of the dollar was found to cause export prices of these countries (except Saudi Arabia) to rise. While changes in the exchange rate of the dollar influence these countries' trade balances, the long-run trade balance adjustments seem to follow different patterns and time profiles.