American Economic Review Vol. 77 No. 1 1987
Exchange Rates and Prices
Abstract
[The adjustment of relative prices to exchange rate movements is explained in an industrial organization approach, using various models. The extent of price adjustment, given labor costs in the respective currencies, is shown to depend on product substitutability, the relative number of domestic and foreign firms, and market structure. Some empirical evidence is offered to support the theory.]
- Volume
- 77
- Issue
- 1
- Pages
- 93-106
- Sources
- bibtex:phds-export.bib