Working Paper: NBER ID: w17074
Authors: Sebastian Edwards
Abstract: In this paper I discuss some of the most important lessons on exchange rate policies in emerging markets during the last 35 years. The analysis is undertaken from the perspective of both the Latin American and East Asian nations. Some of the topics addressed include: the relationship between exchange rate regimes and growth, the costs of currency crises, the merits of "dollarization," the relation between exchange rates and macroeconomic stability, monetary independence under alternative exchange rate arrangements, and the effects of the recent global "currency wars" on exchange rates in commodity exporters.
Keywords: No keywords provided
JEL Codes: F0; F31; F32; F41
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| currency crises (F31) | GDP growth (O49) |
| currency crises (F31) | unemployment (J64) |
| currency crises (F31) | inflation (E31) |
| flexible exchange rates (F31) | long-term growth (D25) |
| rigid pegs (D50) | long-term growth (D25) |
| dollarization (F31) | economic performance (P17) |
| U.S. interest rates (E43) | monetary policy independence (E58) |