The Effects of Exchange Rate Fluctuations on Output and Prices: Evidence From Developing Countries

Topics:
Inflation
Tags:
Currency & Foreign Exchange,
Developing Country,
Exchange Rate,
Finance,
Fluctuation,
Free Trade
Source:
International Monetary Fund

FREE Registration is required

Overview: The paper examines the effects of exchange rate fluctuations on real output and the price level in a sample of 33 developing countries. The theoretical model decomposes movements in the exchange rate into anticipated and unanticipated components. Unanticipated currency fluctuations help to determine aggregate demand through exports, imports, and the demand for domestic currency, and aggregate supply through the cost of imported intermediate goods. Anticipated exchange rate depreciation, through the supply channel, has limited effects on output growth and inflation. Unanticipated currency fluctuations appear more significant, with varying effects on output growth and price inflation across developing countries.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 991KB | Date: Oct 2003 | Pages: 32

People who downloaded this item also downloaded

White Paper The Emerging Global Intelligent Utility
White Paper Rethinking Emerging Market Strategies: From Offshoring To Strategic Expansion
White Paper Global Trade Solutions: Strategy - Automation - Customs/Export Compliance
White Paper Do Double Taxation Treaties Increase Foreign Direct Investment To Developing Countries?
White Paper Identifying The Relationship Between Trade And Exchange Rate Volatility

Top results from Inflation

White Paper Security Threat Report: July 2009 update
White Paper Dynamic Power Variations in Data Centers and Network Rooms
White Paper Coordination, Fair Treatment and Inflation Persistence
White Paper Inflation Persistence and Relative Contracting
White Paper Does the Labor Share of Income Drive Inflation?

» View all Inflation listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).