Tariffs and the exchange rate : evidence from Twitter / by Dmitry Matveev and Francisco Ruge-Murcia. : FB3-5/2021-36E-PDF
"This paper examines the conjecture that an increase in tariffs in a flexible exchange rate regime leads to the appreciation of the local currency. We focus on the reaction of the exchange rate market to tweets by US President Donald Trump regarding possible tariff increases on Canadian and Mexican goods. The anticipation of trade restrictions leads to the US dollar appreciating by 0.023% and 0.051% vis-à-vis the Canadian dollar and Mexican peso within five minutes of the tweet, and comparable percentages for forward rates up to five years ahead. Exchange rate appreciation may mitigate the expenditure-switching intended by the protectionist policy"--Abstract, page ii.
Lien permanent pour cette publication :
publications.gc.ca/pub?id=9.903144&sl=1
| Ministère/Organisme | Bank of Canada, issuing body. |
|---|---|
| Titre | Tariffs and the exchange rate : evidence from Twitter / by Dmitry Matveev and Francisco Ruge-Murcia. |
| Titre de la série | Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-36 |
| Type de publication | Série - Voir l'enregistrement principal |
| Langue | [Anglais] |
| Format | Électronique |
| Document électronique | |
| Note(s) | "Last updated: July 21, 2021." Includes bibliographical references (pages 26-27). |
| Information sur la publication | Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2021. ©2021 |
| Auteur / Contributeur | Matveev, Dmitry, author. |
| Description | 1 online resource (ii, 27 pages) : colour illustrations. |
| Numéro de catalogue |
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| Descripteurs | Trump, Donald, 1946- -- Language. Trump, Donald, 1946- -- Langage. Foreign exchange rates -- Econometric models. Tariff -- Econometric models. Microblogs -- Econometric models. Taux de change -- Modèles économétriques. Tarif douanier -- Modèles économétriques. Micromessages -- Modèles économétriques. |