Hidden Bibliographic Details
Other authors / contributors: | Fei, Xuan, author.
International Monetary Fund, issuing body.
|
ISBN: | 1498322859 9781498322850
|
Notes: | Online resource; title from PDF title page (IMF, viewed Sept. 1, 2020).
|
Summary: | There is an ongoing debate in the literature on whether global trade flows have become disconnected from the large real effective exchange rate movements in the wake of the global financial crisis. The question has important policy implications for the role of exchange rates in supporting growth and restoring external balance. In this paper, we use Turkey--a large and open emerging market economy that has experienced sizable swings of the real effective exchange rate--as a case study to test competing hypotheses. Our results lend support to the finding in existing cross-country studies that the real effective exchange rate remains an important determinant of trade flows. But, its effect is not symmetric in secular periods of appreciation and depreciation and is, oftentimes, dwarfed by the impact on trade flows of the income growth differential between trade partners.
|
Other form: | Print version: Iossifov, Plamen K. Real Effective Exchange Rate and Trade Balance Adjustment: the Case of Turkey. Washington, D.C. : International Monetary Fund, ©2019 9781498312738
|