Evolution of the Trade Balance in Response to Exchange Rate Policy: State of the Art

Abstract

The main objective of this paper is to give a comprehensive overview of the scientific literature on the impact of exchange rate policy choices on a country’s trade balance. As the global economy becomes more interconnected, no country can be fully self-sufficient. All nations must participate in international trade and maintain economic relations. In this context, exchange rate policy has become an important tool for managing these transactions. It has also become a key indicator of economic performance for each country, which explains why it attracts growing interest from researchers and policymakers