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 |
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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 |
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okr-10986-28013 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ABSOLUTE VALUE ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES ASSETS BALANCE SHEET BALANCE SHEET MISMATCHES BANK LENDING BANKRUPTCY BENEFICIARIES BUDGET DEFICITS BUSINESS CYCLES CAPITA INCOME CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COMPETITIVE EXCHANGE RATE COMPETITIVE REAL EXCHANGE RATE COMPETITIVE REAL EXCHANGE RATES COMPETITIVENESS CONSOLIDATION CORPORATE SAVINGS CREDIT CEILINGS CROSS-COUNTRY EVIDENCE CURRENCY CURRENCY APPRECIATION CURRENCY CRISES CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT SURPLUS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DISTORTIONS DOMESTIC DEMAND DOMESTIC PRICE DOMESTIC PRICE LEVEL DUMMY VARIABLE ECONOMETRIC EVIDENCE ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH EFFECTIVE EXCHANGE RATE EMERGING COUNTRIES EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKETS EMPIRICAL STUDIES ENTRY BARRIERS EXCHANGE RATE CLASSIFICATION EXCHANGE RATE DEPRECIATION EXCHANGE RATE DETERMINATION EXCHANGE RATE FLEXIBILITY EXCHANGE RATE MOVEMENTS EXCHANGE RATE POLICY EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE STABILITY EXCHANGE RATE SYSTEM EXCHANGE RATE VARIABILITY EXCHANGE RATE VOLATILITIES EXIT STRATEGIES EXIT STRATEGY EXPENDITURE EXPORT GROWTH EXPORT INCENTIVES EXPORT MARKET EXPORT PERFORMANCE EXPORT SHARES EXPORTERS EXPOSURES EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL DEMAND FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISES FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL SYSTEMS FISCAL POLICIES FISCAL POLICY FLEXIBLE EXCHANGE RATES FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FUNDAMENTAL DETERMINANTS GLOBAL IMBALANCES GLOBALIZATION GOVERNMENT REVENUE GROWTH RATES HEDGING INSTRUMENTS HUMAN CAPITAL IMPORT IMPORTS INDUSTRIAL COUNTRIES INFLATION INSTITUTIONAL CAPACITY INSTRUMENT INSTRUMENTAL VARIABLES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTMENT RATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LAND REFORM LEVELS OF INVESTMENT LEVY LIFE-CYCLE MODEL LIVING STANDARDS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMIC VOLATILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FORCES MARKET PRESSURES MISALIGNMENT MONETARY POLICY MULTIPLE EXCHANGE RATES NATIONAL INCOME NOMINAL DEPRECIATION NOMINAL EXCHANGE RATE OPEN ECONOMY OPTIMAL ALLOCATION OUTPUT GROWTH PLANNED ECONOMIES POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO POVERTY REDUCTION PRICE OF EXPORTS PRIVATE INVESTMENT PROPERTY RIGHTS PUBLIC SPENDING PURCHASING POWER RAPID GROWTH RATE OF GROWTH REAL APPRECIATIONS REAL DEPRECIATION REAL DEPRECIATIONS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATE UNCERTAINTY REAL EXCHANGE RATE VOLATILITY REAL EXCHANGE RATES REGULATORY REFORM RELATIVE PRICE RELATIVE PRICES RESERVE RESERVE ACCUMULATION RETURN RETURNS RISK NEUTRAL SAVINGS RATE SAVINGS RATES SCATTER PLOTS SLOWDOWN STANDARD DEVIATION SUPPLY CONDITIONS SUSTAINED GROWTH TAX TAX REFORMS TRADE LIBERALIZATION TRADE REGIME TRADE REGIMES TRANSITION ECONOMIES UPWARD PRESSURE WORLD ECONOMY WORLD PRICE |
| spellingShingle |
ABSOLUTE VALUE ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES ASSETS BALANCE SHEET BALANCE SHEET MISMATCHES BANK LENDING BANKRUPTCY BENEFICIARIES BUDGET DEFICITS BUSINESS CYCLES CAPITA INCOME CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COMPETITIVE EXCHANGE RATE COMPETITIVE REAL EXCHANGE RATE COMPETITIVE REAL EXCHANGE RATES COMPETITIVENESS CONSOLIDATION CORPORATE SAVINGS CREDIT CEILINGS CROSS-COUNTRY EVIDENCE CURRENCY CURRENCY APPRECIATION CURRENCY CRISES CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT SURPLUS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DISTORTIONS DOMESTIC DEMAND DOMESTIC PRICE DOMESTIC PRICE LEVEL DUMMY VARIABLE ECONOMETRIC EVIDENCE ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH EFFECTIVE EXCHANGE RATE EMERGING COUNTRIES EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKETS EMPIRICAL STUDIES ENTRY BARRIERS EXCHANGE RATE CLASSIFICATION EXCHANGE RATE DEPRECIATION EXCHANGE RATE DETERMINATION EXCHANGE RATE FLEXIBILITY EXCHANGE RATE MOVEMENTS EXCHANGE RATE POLICY EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE STABILITY EXCHANGE RATE SYSTEM EXCHANGE RATE VARIABILITY EXCHANGE RATE VOLATILITIES EXIT STRATEGIES EXIT STRATEGY EXPENDITURE EXPORT GROWTH EXPORT INCENTIVES EXPORT MARKET EXPORT PERFORMANCE EXPORT SHARES EXPORTERS EXPOSURES EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL DEMAND FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISES FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL SYSTEMS FISCAL POLICIES FISCAL POLICY FLEXIBLE EXCHANGE RATES FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FUNDAMENTAL DETERMINANTS GLOBAL IMBALANCES GLOBALIZATION GOVERNMENT REVENUE GROWTH RATES HEDGING INSTRUMENTS HUMAN CAPITAL IMPORT IMPORTS INDUSTRIAL COUNTRIES INFLATION INSTITUTIONAL CAPACITY INSTRUMENT INSTRUMENTAL VARIABLES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTMENT RATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LAND REFORM LEVELS OF INVESTMENT LEVY LIFE-CYCLE MODEL LIVING STANDARDS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMIC VOLATILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FORCES MARKET PRESSURES MISALIGNMENT MONETARY POLICY MULTIPLE EXCHANGE RATES NATIONAL INCOME NOMINAL DEPRECIATION NOMINAL EXCHANGE RATE OPEN ECONOMY OPTIMAL ALLOCATION OUTPUT GROWTH PLANNED ECONOMIES POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO POVERTY REDUCTION PRICE OF EXPORTS PRIVATE INVESTMENT PROPERTY RIGHTS PUBLIC SPENDING PURCHASING POWER RAPID GROWTH RATE OF GROWTH REAL APPRECIATIONS REAL DEPRECIATION REAL DEPRECIATIONS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATE UNCERTAINTY REAL EXCHANGE RATE VOLATILITY REAL EXCHANGE RATES REGULATORY REFORM RELATIVE PRICE RELATIVE PRICES RESERVE RESERVE ACCUMULATION RETURN RETURNS RISK NEUTRAL SAVINGS RATE SAVINGS RATES SCATTER PLOTS SLOWDOWN STANDARD DEVIATION SUPPLY CONDITIONS SUSTAINED GROWTH TAX TAX REFORMS TRADE LIBERALIZATION TRADE REGIME TRADE REGIMES TRANSITION ECONOMIES UPWARD PRESSURE WORLD ECONOMY WORLD PRICE Eichengreen, Barry The Real Exchange Rate and Economic Growth |
| relation |
Commission on Growth and Development Working Paper;No. 4 |
| description |
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. |
| format |
Working Paper |
| author |
Eichengreen, Barry |
| author_facet |
Eichengreen, Barry |
| author_sort |
Eichengreen, Barry |
| title |
The Real Exchange Rate and Economic Growth |
| title_short |
The Real Exchange Rate and Economic Growth |
| title_full |
The Real Exchange Rate and Economic Growth |
| title_fullStr |
The Real Exchange Rate and Economic Growth |
| title_full_unstemmed |
The Real Exchange Rate and Economic Growth |
| title_sort |
real exchange rate and economic growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/868701468152077108/The-real-exchange-rate-and-economic-growth http://hdl.handle.net/10986/28013 |
| _version_ |
1764465965573079040 |
| spelling |
okr-10986-280132021-04-23T14:04:46Z The Real Exchange Rate and Economic Growth Eichengreen, Barry ABSOLUTE VALUE ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES ASSETS BALANCE SHEET BALANCE SHEET MISMATCHES BANK LENDING BANKRUPTCY BENEFICIARIES BUDGET DEFICITS BUSINESS CYCLES CAPITA INCOME CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COMPETITIVE EXCHANGE RATE COMPETITIVE REAL EXCHANGE RATE COMPETITIVE REAL EXCHANGE RATES COMPETITIVENESS CONSOLIDATION CORPORATE SAVINGS CREDIT CEILINGS CROSS-COUNTRY EVIDENCE CURRENCY CURRENCY APPRECIATION CURRENCY CRISES CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT SURPLUS DEVALUATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DEVELOPMENT BANK DEVELOPMENT ECONOMICS DISTORTIONS DOMESTIC DEMAND DOMESTIC PRICE DOMESTIC PRICE LEVEL DUMMY VARIABLE ECONOMETRIC EVIDENCE ECONOMIC ACTIVITY ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC RESEARCH EFFECTIVE EXCHANGE RATE EMERGING COUNTRIES EMERGING MARKET EMERGING MARKET COUNTRIES EMERGING MARKETS EMPIRICAL STUDIES ENTRY BARRIERS EXCHANGE RATE CLASSIFICATION EXCHANGE RATE DEPRECIATION EXCHANGE RATE DETERMINATION EXCHANGE RATE FLEXIBILITY EXCHANGE RATE MOVEMENTS EXCHANGE RATE POLICY EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE STABILITY EXCHANGE RATE SYSTEM EXCHANGE RATE VARIABILITY EXCHANGE RATE VOLATILITIES EXIT STRATEGIES EXIT STRATEGY EXPENDITURE EXPORT GROWTH EXPORT INCENTIVES EXPORT MARKET EXPORT PERFORMANCE EXPORT SHARES EXPORTERS EXPOSURES EXTERNAL DEBT EXTERNAL DEFICIT EXTERNAL DEMAND FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISES FINANCIAL DEVELOPMENT FINANCIAL FRAGILITY FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL RISKS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL SYSTEMS FISCAL POLICIES FISCAL POLICY FLEXIBLE EXCHANGE RATES FOREIGN CAPITAL FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN EXCHANGE MARKETS FOREIGN EXCHANGE RESERVES FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN MARKETS FUNDAMENTAL DETERMINANTS GLOBAL IMBALANCES GLOBALIZATION GOVERNMENT REVENUE GROWTH RATES HEDGING INSTRUMENTS HUMAN CAPITAL IMPORT IMPORTS INDUSTRIAL COUNTRIES INFLATION INSTITUTIONAL CAPACITY INSTRUMENT INSTRUMENTAL VARIABLES INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEVELOPMENT INTERNATIONAL ECONOMICS INVESTMENT RATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LAND REFORM LEVELS OF INVESTMENT LEVY LIFE-CYCLE MODEL LIVING STANDARDS MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC STABILITY MACROECONOMIC VOLATILITY MARKET CONDITIONS MARKET DEVELOPMENT MARKET FORCES MARKET PRESSURES MISALIGNMENT MONETARY POLICY MULTIPLE EXCHANGE RATES NATIONAL INCOME NOMINAL DEPRECIATION NOMINAL EXCHANGE RATE OPEN ECONOMY OPTIMAL ALLOCATION OUTPUT GROWTH PLANNED ECONOMIES POLICY OPTIONS POLICY RESEARCH POLITICAL ECONOMY POLITICAL STABILITY PORTFOLIO POVERTY REDUCTION PRICE OF EXPORTS PRIVATE INVESTMENT PROPERTY RIGHTS PUBLIC SPENDING PURCHASING POWER RAPID GROWTH RATE OF GROWTH REAL APPRECIATIONS REAL DEPRECIATION REAL DEPRECIATIONS REAL EFFECTIVE EXCHANGE RATE REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATE UNCERTAINTY REAL EXCHANGE RATE VOLATILITY REAL EXCHANGE RATES REGULATORY REFORM RELATIVE PRICE RELATIVE PRICES RESERVE RESERVE ACCUMULATION RETURN RETURNS RISK NEUTRAL SAVINGS RATE SAVINGS RATES SCATTER PLOTS SLOWDOWN STANDARD DEVIATION SUPPLY CONDITIONS SUSTAINED GROWTH TAX TAX REFORMS TRADE LIBERALIZATION TRADE REGIME TRADE REGIMES TRANSITION ECONOMIES UPWARD PRESSURE WORLD ECONOMY WORLD PRICE 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. 2017-08-28T17:13:40Z 2017-08-28T17:13:40Z 2008 Working Paper http://documents.worldbank.org/curated/en/868701468152077108/The-real-exchange-rate-and-economic-growth http://hdl.handle.net/10986/28013 English en_US Commission on Growth and Development Working Paper;No. 4 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |