We study the impact of exogenous terms‐of‐trade shocks in a large sample of small open economies. Using a panel vector autoregression, we estimate the response of domestic variables including the exchange rate, output, exports, imports, and domestic demand, allowing impulse responses to vary according to the de facto exchange rate regime. We find strong evidence that flexible exchange rate regimes play a shock‐absorbing role by reducing the response of output to terms‐of‐trade shocks. Results show that flexible regimes see a stronger response of the real exchange rate and faster external adjustment, suggestive of a mechanism that switches expenditure from imported to domestically‐produced goods.

中文翻译：

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汇率灵活性，实际汇率以及对贸易条件冲击的调整

我们在大量的小型开放经济体样本中研究了外来贸易条件冲击的影响。使用面板向量自回归，我们估算包括汇率，产出，出口，进口和国内需求在内的国内变量的响应，从而使冲激响应根据实际汇率制度而变化。我们发现有力的证据表明，灵活的汇率制度通过减少产出对贸易条件冲击的反应而发挥了冲击吸收的作用。结果表明，灵活的体制看到了对实际汇率的更强响应和更快的外部调整，这暗示了一种将支出从进口商品转换为国内生产商品的机制。