The International Role of the Dollar and Trade Balance Adjustment

The pattern of international trade adjustment is affected by the continuing international role of the dollar and related evidence on exchange rate pass-through into prices. This paper argues that a depreciation of the dollar would have asymmetric effects on flows between the United States and its trading partners. With low exchange rate pass-through to U.S. import prices and high exchange rate pass-through to the local prices of countries consuming U.S. exports, the effect of dollar depreciation on real trade flows is dominated by an adjustment in U.S. export quantities, which increase as U.S. goods become cheaper in the rest of the world. Real U.S. imports are affected less because U.S. prices are more insulated from exchange rate movements — pass-through is low and dollar invoicing is high. In relation to prices, the effects on the U.S. terms of trade are limited: U.S. exporters earn the same amount of dollars for each unit shipped abroad, and U.S. consumers do not encounter more expensive imports. Movements in dollar exchange rates also affect the international trade transactions of countries invoicing some of their trade in dollars, even when these countries are not transacting directly with the United States.

Vehicle currency use in international trade

Although currency invoicing in international trade transactions is central to the transmission of monetary policy, the forces motivating the choice of currency have long been debated. We introduce a model wherein agents involved in international trade can invoice in the exporter's currency, the importer's currency, or a third-country vehicle currency. The model is designed to contrast the contribution of macroeconomic variability with that of industry-specific features in the selection of an invoice currency. We show that producers in industries with high demand elasticities are more likely than producers in other industries to display herding in their choice of currency. This industry-related force is more influential than local macroeconomic performance in determining producers' choices. Drawing on data on invoice currency use in exports and imports for twenty-four countries, we document that the dollar is the currency of choice for most transactions involving the United States. The dollar is also extensively used as a vehicle currency in international trade flows that do not directly involve the United States. Consistent with the results of our model, this last finding is largely attributable to international trade in reference-priced goods and goods traded on organized exchanges. Although the magnitude of business cycle volatility matters for invoicing of more differentiated products, it is less central for invoicing nondifferentiated good

Micro, Macro, and Strategic Forces in International Trade Invoicing

The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter’s invoicing choice reflects structural aspects of her industry, such as market share and the price-sensitivity of demand, the hedging of marginal costs, due for instance to the use of imported inputs, and macroeconomic volatility. We use a new highly disaggregated dataset to assess the roles of the various invoicing determinants. We find support for the factors identified in the literature, and document a new feature, in the form of a link between shipments size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer’s currency. We offer a potential theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through a bargaining between exporters and importers, a feature that is absent from existing models despite its empirical relevance.

Macroeconomic Interdependence and the International Role of the Dollar

The U.S. dollar holds a dominant place in the invoicing of international trade, along two complementary dimensions. First, most U.S. exports and imports invoiced in dollars. Second, trade flows that do not involve the United States are also substantially invoiced in dollars, an aspect that has received relatively little attention. Using a simple center-periphery model, we show that the second dimension magnifies the exposure of periphery countries to the center's monetary policy, even when direct trade flows between the center and the periphery are limited. When intra-periphery trade volumes are sensitive to the center's monetary policy, the model predicts substantial welfare gains from coordinated monetary policy. Our model also shows that even though exchange rate movements are not fully efficient, flexible exchange rates are a central component of optimal policy.

Geology, soils and climate of the Margaret River wine region

This report is an extract from the broader description and analysis of the geology, soils and climate of all the wine regions of Western Australia currently being developed by DPIRD. It expands on the brief descriptions in the second edition of \u27Viticulture\u27 (Coombe & Dry 2004) concerning the soils and landscapes of Western Australia’s main wine growing regions. We have tailored this report extract to the specific needs of the Margaret River wine region. It contains local soil names and soil-landscape zones and systems maps. The wine industry recognises the importance of giving customers an understanding of the vines’ environment and how that may influence wine character and quality. This allows growers to tell the story of their wine and their label to form direct connections between the wine producer and the consumer. This story has become even more important in the 21st century when, in addition to direct cellar sales, a good online presence is essential. The information in this report will support that story and underpin it with the most current geology, soil and climatic data

Micro, Macro, and Strategic Forces in International Trade Invoicing

The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter's invoicing choice reflects structural aspects of its industry, such as market share and the price sensitivity of demand, as well as the hedging of marginal costs (due, for instance, to the use of imported inputs) and macroeconomic volatility. We use a new, highly disaggregated data set to assess the roles of the various invoicing determinants. Our findings support the factors identified in the literature and document a new feature: a link between shipment size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer's currency. We offer a theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through bargaining between exporters and importers, a feature absent from existing models despite its empirical relevance

Interactions entre les réseaux de la faune et des voies de circulation

L’ingénieur qui développe les réseaux d’infrastructure de transports en raison d’une demande croissante en mobilité (essor de l’économie, population et niveau de vie en augmentation, etc.) doit faire en sorte que ceux-ci soient efficaces, sûrs, économiques et respectueux de l’environnement. Cette tâche ardue ne peut s’accomplir sans un travail interdisciplinaire faisant notamment intervenir un écologue pour tout ce qui concerne la protection de la faune. La collaboration « ingénieur – spécialiste de la faune » doit débuter au stade de l’étude de planification du projet, les documents situant les réseaux écologiques (corridors et zones-réservoir) et les milieux protégés devant être dans les mains de l’ingénieur lors du choix du tracé de la voie de circulation. Les impacts d’une infrastructure de transport sur la faune portent atteinte à la capacité d’accueil du milieu, au taux de mortalité des espèces animales et à la fonctionnalité du réseau écologique. Les solutions passent par l’identification des réseaux écologiques existants, l’analyse de la perméabilité effective de la voie de circulation et l’élaboration d’un concept de réseau écologique futur qui doit tenir compte de l’évolution prévisible du paysage et de l’aspect régional de la problématique. Le plan de mesures pour la faune est élaboré conjointement par l’ingénieur et l’écologue sur la base de ce concept de réseau écologique futur. Il doit viser la sécurité pour les usagers de la voie de circulation, la protection de la faune et un rapport « efficacité/coût » élevé pour les mesures projetées. Ce dernier s’obtient entre autres en aménageant pour la faune les ouvrages de franchissement non spécifiques et en intégrant les passages à faune dans le paysage à l’aide d’aménagements s’étendant au-delà de l’emprise de la voie de circulation. La gestion des mesures pour la faune est une nécessité pour garantir leur efficacité à long terme. Elle doit être planifiée lors du projet et doit fixer notamment le financement et les intervenants prenant part à l’entretien, à la surveillance et aux contrôles d’efficacité

Schwannoma-like pleomorphic adenoma of the parotid

Pleomorphic adenoma is the most common benign salivary gland tumour. It can occur in any salivary gland, but is most frequently found in the parotid gland. Chondroid metaplasia is a frequent finding in pleomorphic adenoma. Other forms of metaplasia have been described, but are encountered less frequently. We report a rare case of unusual pleomorphic adenoma of the parotid gland with schwannoma-like feature