Francesco Aiello

The contribution https://www.theguardian.com/business/2016/oct/21/why-pound-sterling-collapse-not-good-uk-economy-robert-skidelsky by Robert Skidelsky refers to one of my paper, which is not an unnamed source as someone wrote. Indeed results (easy to be verified) are in http://onlinelibrary.wiley.com/doi/10.1111/cwe.12136/abstract

The story the paper tells is that Trade Elasticity matters when evaluating the effects of devaluations. For the UK and the others. Without puzzling-

On 24/10/2016 at 10:11 AM, chiang mai said:

 

That's a very good read, it rather knocks on the head the idea that a devalued Pound is good for exports:

 

"But various studies have shown that the price elasticity of demand for UK exports is low. For example, a recent paper by Francesco Aiello, Graziella Bonanno, and Alessia Via of the European Trade Study Group finds that “the long-run level of exports appears to be unrelated to the real exchange rate for the UK.”

 

This is an econometric evidence from export functions: Details are in  http://onlinelibrary.wiley.com/doi/10.1111/cwe.12136/abstract  Results are theoretically admitted as trade elasticity may be unity (mostly in the long run).  Without surprise.