The Causal Effects of Expected Depreciations -- by Martha Elena Delgado Rojas, Juan Herreño, Marc Hofstetter, Mathieu Pedemonte

We construct a novel measure of one-year-ahead exchange rate forecasts and nowcasts for non-financial firms. We then study a randomized information intervention that provides a subset of firms with a publicly available exchange rate forecast. This information treatment persistently shifts exchange rate expectations and perceptions, with stronger effects for non-exporting firms. We link survey responses with administrative customs data and estimate a positive intertemporal elasticity of import demand to exogenous changes in expected future exchange rates. Our findings highlight the role of intertemporal substitution after anticipated changes in trade costs.