I Got A Lot Out Of All Of The Presentations This Week (Including

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I got a lot out of all of the presentations this week (including my own), but the article that stuck with me the most was the one presented by Shawn (Identifying the Relationship between Trade and Exchange Rate Volatility) by Christian Broda and John Romalis. I particularly enjoyed his presentation and I thought it stood out due to the diverse views that elicited from the class. He effectively outlined the entire article by clearly establishing the keys questions the authors’ were attempting to address, described the key aspects of the extensive methodology utilized, presented the important findings, and then made us really apply what we had learned. Overall, as a discussion facilitator and according the assessment criteria, I would grade…show more content…
Typically, less developed economies are vulnerable to exchange rate volatility and are known for exporting commodities. This in of itself provokes little change in current policy as we learned that commodities are less affected by exchange rate volatility than more highly differentiated products, but we concluded that it does have implications for less developed economies moving forward. Obviously, many policy makers in these countries want their economies to evolve and move towards being developed, but we concluded that this move should be done gradually. The term ‘differentiated products’ is broad and there are various levels of product differentiation. There are products that are considered ‘differentiated’ yet are affected by exchange rate volatility in a similar way as commodities are. For example, we initially thought of semiconductors, which are considered to be differentiated products, but are exported by countries with developing economies and are even indexed and traded in secondary markets in similar ways as commodities. We agreed that authorities in countries with emerging market economies should focus on reasonably paced development and sustainability in order to withstand exchange rate volatility. We also had an idea on how policymakers in these developing economies should react to the strengthening U.S dollar

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