TY - JOUR T1 - The Role of International Reserves in Terms of Trade impact on the Real Effective Exchange Rate TT - تأثیر ذخایر بین المللی در اثرگذاری رابطه‌ی مبادله بر نرخ ارز حقیقی مؤثر JF - JSE JO - JSE VL - 2 IS - 3 UR - http://jemr.khu.ac.ir/article-1-110-en.html Y1 - 2011 SP - 123 EP - 142 KW - Real effective exchange rate KW - terms of trade KW - international reserves KW - financial development KW - panel data N2 - This study investigates the effects of terms of trade shocks and international reserves on the real effective exchange rate. For this purpose is used panel data technique and data related to 20 countries for 1980- 2008 period. Estimation results show that international reserves have buffer effect in terms of trade shocks and cause terms of trade shocks have less effect on real exchange rate. Of course this result confirms in developing countries, but don’t confirm in developed countries. In addition according to results, reserve effect in reduction terms of trade shocks effect in oil exporting countries is more than other countries. Also, according to estimations in this study, increase in financial development reduces buffer role of international reserves. M3 ER -