Flexible exchange rates as shock absorbers

In this paper we analyze empirically the effect of terms of trade shocks on economic performance under alternative exchange rate regimes. We are particularly interested in investigating whether terms of trade disturbances have a smaller effect on growth in countries with a flexible exchange rate reg...

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Autores principales: Edwards, Sebastián, Levy Yeyati, Eduardo
Formato: Documento de trabajo acceptedVersion
Lenguaje:Inglés
Publicado: Universidad Torcuato Di Tella. Escuela de Negocios. Centro de Investigaciones en Finanzas (CIF) 2018
Materias:
Política monetaria
Tipo de cambio
Análisis financiero
Análisis comparativo
Acceso en línea:http://repositorio.utdt.edu/handle/utdt/10762
Aporte de:
Repositorio Digital Universidad Torcuato Di Tella de Universidad Torcuato Di Tella
id I57-R16320.500.13098-10762
record_format dspace
institution Universidad Torcuato Di Tella
institution_str I-57
repository_str R-163
collection Repositorio Digital Universidad Torcuato Di Tella
language Inglés
orig_language_str_mv eng
topic Política monetaria
Tipo de cambio
Análisis financiero
Análisis comparativo
spellingShingle Política monetaria
Tipo de cambio
Análisis financiero
Análisis comparativo
Edwards, Sebastián
Levy Yeyati, Eduardo
Flexible exchange rates as shock absorbers
description In this paper we analyze empirically the effect of terms of trade shocks on economic performance under alternative exchange rate regimes. We are particularly interested in investigating whether terms of trade disturbances have a smaller effect on growth in countries with a flexible exchange rate regime, than in countries with a more rigid exchange rate arrangement. We also analyze whether negative and positive terms of trade shocks have asymmetric effects on growth, and whether the magnitude of these asymmetries depends on the exchange rate regime. We find evidence suggesting that terms of trade shocks get amplified in countries that have more rigid exchange rate regimes. We also find evidence of an asymmetric response to terms of trade shocks: the output response is larger for negative than for positive shocks. Finally, we find evidence supporting the view that, after controlling for other factors, countries with more flexible exchange rate regimes grow faster than countries with fixed exchange rates.
format Documento de trabajo
acceptedVersion
author Edwards, Sebastián
Levy Yeyati, Eduardo
author_facet Edwards, Sebastián
Levy Yeyati, Eduardo
author_sort Edwards, Sebastián
title Flexible exchange rates as shock absorbers
title_short Flexible exchange rates as shock absorbers
title_full Flexible exchange rates as shock absorbers
title_fullStr Flexible exchange rates as shock absorbers
title_full_unstemmed Flexible exchange rates as shock absorbers
title_sort flexible exchange rates as shock absorbers
publisher Universidad Torcuato Di Tella. Escuela de Negocios. Centro de Investigaciones en Finanzas (CIF)
publishDate 2018
url http://repositorio.utdt.edu/handle/utdt/10762
work_keys_str_mv AT edwardssebastian flexibleexchangeratesasshockabsorbers
AT levyyeyatieduardo flexibleexchangeratesasshockabsorbers
bdutipo_str Repositorios
_version_ 1764820543043796996

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