Cheaper currencies and long‐term growth
The effect of exchange rate management and capital controls
Bibliographic Data
| ID | 21543169 |
|---|---|
| Authors | Phornchanok Cumperayot (0000-0001-8951-4670, Faculty of Economics Chulalongkorn University Bangkok Thailand, corresponding author), Roy Kouwenberg (0000-0001-9312-4587, College of Management Mahidol University Bangkok Thailand, corresponding author) |
| Year | 2021 |
| Volume | 44 |
| Issue | 9 |
| Pages | 2738-2757 |
| Publication date | 2021-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.13081 |
| OpenAlex | W3116726706 |
| Language | EN |
| References cited | 34 |
In this paper, we test whether weakening the domestic currency can help boost economic growth. To estimate this policy‐relevant but yet complex link, we apply a new mediation analysis to isolate the long‐term growth effects of currency undervaluation induced by active exchange rate management and capital control policies. Using a dataset of 182 countries in the post‐Bretton‐Woods period, we find that changes in undervaluation driven by exchange rate management and capital control policies have no significant impact on long‐term growth. In addition, the direct growth effects of these policies are typically negative and offset the small positive impact gained indirectly through increased currency undervaluation
Capital control · Capital flows · Currency · Economics · Exchange rate · International economics · Macroeconomics · Market economy · Monetary economics · Economic Policies and Impacts · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
The Real Exchange Rate and Economic Growth
The Modern History of Exchange Rate Arrangements
The Next Generation of the Penn World Table
Power Anomalies in Testing Mediation
Real exchange rate policies for economic development
Inflation Targeting and Real Exchange Rates in Emerging Markets
Current account dynamics, real exchange rate adjustment, and the exchange rate regime in emerging-market economies
Fear of appreciation
What matters for financial development? Capital controls, institutions, and interactions
Export surges
Should developing countries undervalue their currencies
Robust Estimations of Equilibrium Exchange Rates Within the G20
The moderator–mediator variable distinction in social psychological research
The moderator-mediator variable distinction in social psychological research
| Citation velocity | historical |
|---|---|
| Highly cited | No |