00000nam 2200000za 4500 9.859880 CaOODSP 20221107160345 cr ||||||||||| 180731s2018 oncd ob f000 0 eng d CaOODSP eng eng fre FB3-5/2018-37E-PDF Imura, Yuko. The extensive margin of trade and monetary policy [electronic resource] / by Yuko Imura and Malik Shukayev. [Ottawa] : Bank of Canada, 2018. ii, 34 p. : col. charts. Bank of Canada staff working paper, 1701-9397 ; 2018-37 "July 2018." Includes bibliographical references (p. 31-33). "This paper studies the effects of monetary policy shocks on firms’ participation in exporting. We develop a two-country dynamic stochastic general equilibrium model in which heterogeneous firms make forward-looking decisions on whether to participate in the export market and prices are staggered across firms and time. We show that while lower interest rates and a currency depreciation associated with an expansionary monetary policy help to increase the value of exporting, the inflationary effects of the policy stimulus weaken the competitiveness of some firms, resulting in a contraction in firms’ export participation. In contrast, positive productivity shocks lead to a currency depreciation and an expansion in export participation at the same time. We show that, overall, the extensive margin is more sensitive to firms’ price competitiveness with other firms in the export market than to exchange rate movements or interest rates"--Abstract, p. ii. Includes abstract in French. gccst Monetary policy gccst International trade gccst Exports Shukayev, Malik. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2018-37. (CaOODSP)9.806221 PDF 1.33 MB https://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-37-eng.pdf