The Real Exchange Rate and Economic Growth
The real exchange rate was not at the center of the first generation of neoclassical growth models, nor was it prominent among the policy prescriptions that flowed from those models. Recent analyses, in contrast, have paid it more attention. This p...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/868701468152077108/The-real-exchange-rate-and-economic-growth http://hdl.handle.net/10986/28013 |
| Summary: | The real exchange rate was not at the
center of the first generation of neoclassical growth
models, nor was it prominent among the policy prescriptions
that flowed from those models. Recent analyses, in contrast,
have paid it more attention. This paper analyzes the role of
the real exchange rate in the growth process, the channels
through which the real exchange rate influences other
variables, and policies useful (and not useful) for
governing the real rate. An appendix provides econometric
evidence supportive of the emphases in the text. |
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