Exchange Rate Volatility and Growth in Emerging Europe and East Asia

被引：0
作者：
Gunther Schnabl
机构：
[1] Leipzig University,
来源：
Open Economies Review | 2009年 / 20卷
关键词：
Exchange rate volatility; Growth; Emerging Europe; East Asia; F31;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
The paper investigates the impact of exchange rate volatility on growth in Emerging Europe and East Asia. Exchange rate 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 increases the probability of speculative capital inflows and overheating. In contrast, exchange rate stability can be argued to affect growth in emerging market economies positively as transactions 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 the exchange rate volatility on growth in both Emerging Europe and East Asia. Parts of this negative growth effect can be associated with exchange rate volatility caused by macroeconomic instability.
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页码：565 / 587
页数：22
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