Exchange Rate Misalignment and Growth : A Myth? /

The impact of real exchange rate movements on GDP growth is a hotly debated issue both in policy and academic circles. In this paper, we provide evidence suggesting that the association between exchange rate misalignment and growth for a broad panel of countries is very weak. Controlling for country...

Szczegółowa specyfikacja

Opis bibliograficzny
1. autor: Goncalves, Carlos
Kolejni autorzy: Rodrigues, Mauro
Format: Czasopismo
Język:English
Wydane: Washington, D.C. : International Monetary Fund, 2017.
Seria:IMF Working Papers; Working Paper ; No. 2017/283
Hasła przedmiotowe:
Dostęp online:Full text available on IMF
Opis
Streszczenie:The impact of real exchange rate movements on GDP growth is a hotly debated issue both in policy and academic circles. In this paper, we provide evidence suggesting that the association between exchange rate misalignment and growth for a broad panel of countries is very weak. Controlling for country fixed effects, time effects and initial GDP, a more depreciated currency is associated with higher growth if one does not exclude outliers. However, this positive association always vanishes after controling for the savings rate. Importantly, this applies for both a large panel of countries and for the emerging economies subsample.
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Opis fizyczny:1 online resource (15 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Ograniczenie dostępu:Electronic access restricted to authorized BRAC University faculty, staff and students