Terms-of-trade shocks in a small open economy
Date of Issue2006
School of Humanities and Social Sciences
This study concentrates on the effects of terms-of-trade shocks in a small open economy. Generally, studies concerned with terms-of-trade fluctuations focus on a few important issues, best summed up by four key questions : (a) What are the short run and long run impacts of the alleged terms-of-trade shock on primary producers? (b) What are the features of an economy that determine the relationship between terms-of-trade shocks and the current account fluctuations? (c) What is the role of exchange rate regimes in mitigating the effects of terms-of-trade shocks? (d) What is the effect of terms-of-trade shocks on economic growth under alternative exchange rate regimes?
DRNTU::Social sciences::Economic theory::International trade