Show simple item record

Files in this item


Item metadata

dc.contributor.authorSenay, Ozge
dc.contributor.authorSutherland, Alan
dc.identifier.citationSenay , O & Sutherland , A 2015 , ' Local currency pricing, foreign monetary shocks and exchange rate policy ' , Open Economies Review , vol. 26 , no. 4 , pp. 633-661 .
dc.identifier.otherPURE: 186666174
dc.identifier.otherPURE UUID: 9cfc5241-7644-4cd9-8299-318bdbcd0799
dc.identifier.otherScopus: 84940574407
dc.identifier.otherORCID: /0000-0002-0175-3886/work/60426751
dc.identifier.otherORCID: /0000-0002-8310-968X/work/60426909
dc.identifier.otherWOS: 000360390600002
dc.descriptionThis research was supported by ESRC [grant number ES/I024174/1]en
dc.description.abstractThe implications of local currency pricing (LCP) for monetary regime choice are analysed for a country facing foreign monetary shocks. In this analysis expenditure switching is potentially welfare reducing. This contrasts with the existing LCP literature, which focuses on productivity shocks and thus analyses a world where expenditure switching is welfare enhancing. This paper shows that, when home and foreign producers follow LCP, expenditure switching is absent and a floating rate is preferred by the home country. But when only home producers follow LCP, expenditure switching is present and a fixed rate can be welfare enhancing for the home country.
dc.relation.ispartofOpen Economies Reviewen
dc.rights© Springer Science+Business Media New York 2015. This is the author's accepted version of this work. The final publication is available at Springer via
dc.subjectMonetary policyen
dc.subjectForeign monetary shocksen
dc.subjectExpenditure switchingen
dc.subjectExchange ratesen
dc.subjectLocal currency pricingen
dc.subjectReference currencyen
dc.subjectHB Economic Theoryen
dc.titleLocal currency pricing, foreign monetary shocks and exchange rate policyen
dc.typeJournal articleen
dc.contributor.sponsorEconomic & Social Research Councilen
dc.contributor.institutionUniversity of St Andrews. School of Economics and Financeen
dc.description.statusPeer revieweden

This item appears in the following Collection(s)

Show simple item record