MARC Record from Scriblio

LEADER: 02332cam 22002777a 4500
001 2004620181
003 DLC
005 20041008135028.0
007 cr |||||||||||
008 041008s2002 dcu sb f000 0 eng
010 $a 2004620181
040 $aDLC$cDLC
050 00 $aHG3879
245 00 $aAre depreciations as contractionary as devaluations?$h[electronic resource] :$ba comparison of selected emerging and industrial economies /$cShaghil Ahmed ... [et al.].
260 $aWashington, D.C. :$bFederal Reserve Board,$c[2002]
490 1 $aInternational finance discussion papers ;$vno. 737
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 10/8/2004.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"According to conventional models, flexible exchange rates play an equilibrating role in open economies, depreciating in response to adverse shocks, boosting net exports, and stimulating aggregate demand. However, critics argue that, at least in developing countries, devaluations are more contractionary and more inflationary than conventional theories would predict. Yet, it is not clear whether devaluations per se have led to adverse outcomes, or rather the disruptive abandonments of pegged exchange-rate regimes associated with devaluations. To explore this hypothesis, we estimate VAR models to compare the responses to devaluation of developing economies and two types of industrial economies: those that have consistently floated, and those that have sustained fixed exchange-rate regimes as well. We find that both of these types of industrial economies exhibit conventional (i.e., expansionary) responses to devaluation shocks, compared with the contractionary responses exhibited by developing countries. This finding suggests that exchange rate movements may be more destabilizing in developing countries than in industrial countries, regardless of exchange rate regime"--Federal Reserve Board web site.
653 $aContractionary devaluations;$aexchange rate regimes
700 1 $aAhmed, Shaghil,$d1959-
830 0 $aInternational finance discussion papers (Online) ;$vno. 737.
856 40 $uhttp://www.federalreserve.gov/pubs/ifdp/2002/737/default.htm