Exchange rate volatility impacts US-Spain trade, affecting exports and imports.
The article examines how exchange rate volatility affects trade between the United States and Spain. The researchers analyzed trade data from 1993 to 2012 and found that exports depend on foreign economic activity and relative prices, while imports depend on domestic economic activity and relative prices. Exchange rate volatility has mixed effects on both exports and imports in the short and long term. Previous studies have shown conflicting results on the impact of exchange rate volatility on trade.