Resource title

Exchange rate volatility and growth in emerging Europe and East Asia

Resource image

image for OpenScout resource :: Exchange rate volatility and growth in emerging Europe and East Asia

Resource description

The paper investigates the impact of exchange rate volatility on growth in Emerging Europe and East Asia. Exchange stability has been argued to affect growth negatively as it deprives countries from the ability to react in a flexible way to asymmetric real shocks and may enhance the probability of speculative capital inflows and overheating. In contrast, exchange rate stability can be argued to affect growth in emerging market economies positively because transaction costs for international trade decline, uncertainty for international capital flows is less and macroeconomic stability is enhanced. Cross country panel estimations provide evidence for a negative impact of exchange rate volatility on growth both in Emerging Europe and East Asia.

Resource author

Gunther Schnabl

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26068

Resource license

Adapt according to the presented license agreement and reference the original author.