Learn how overshooting impacts exchange rate volatility and why Dornbusch’s model is pivotal in explaining the short-term departure from price equilibrium.

Exchange rate pass‐through refers to the extent to which fluctuations in the nominal exchange rate affect domestic prices—both at the producer and consumer levels. This dynamic plays a pivotal role in ...

International Economics examines the cross‐border flow of goods, services, capital and information, shaping how nations interact within an increasingly interdependent global economy. Its scope extends ...

After Japan’s bubble economy burst in the late 1980s and interest rates were subsequently slashed, carry trades and overseas investment boomed. As the Bank of Japan starts to raise Japan’s ...

As the world economy faces unprecedented shifts, the dynamics of global trade, exchange rates and capital flows are evolving in ways that challenge established economic theory and policy frameworks.