Trade Agreements, Exchange Rate Disagreements

Eduardo Fernández-Arias, Ugo Panizza and Ernesto Stein

in Monetary Unions and Hard Pegs

Published in print March 2004 | ISBN: 9780199271405
Published online August 2004 | e-ISBN: 9780191601200 | DOI:
 Trade Agreements, Exchange Rate Disagreements

Show Summary Details


The negative effects on exports and FDI flows of an exchange rate misalignment are amplified when the misalignment is among countries that share a regional integration agreement. Such agreements strengthen the well-established relationship between real appreciation and currency crises. We conclude that coordination to achieve real-exchange-rate consistency within blocs is key to macro stability and, a fortiori, sustainable trade agreements.

Keywords: currency crises; exchange-rate agreements; exchange-rate and trade regimes; international compatibility; protectionism; trade agreements

Chapter.  7171 words.  Illustrated.

Subjects: Economic Systems

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.