Exchange Rate Flexibility, Financial Market Openness and Economic Growth

2016 ◽  
Author(s):  
Il Houng Lee ◽  
Kyunghun KIM ◽  
Eunjung Kang
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Financial Market ◽  
Exchange Rate Flexibility

Exchange Rate Flexibility, Financial Market Openness, and Economic Growth

2018 ◽  
Vol 17 (1) ◽  
pp. 145-162 ◽  
Author(s):  
Il Houng Lee ◽  
Kyunghun Kim
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Financial Market ◽  
Policy Option ◽  
Policy Coordination ◽  
Exchange Rate Policy ◽  
Growth Effect ◽  
Exchange Rate Flexibility ◽  
Rate Policy

We investigate the effect of exchange rate flexibility on economic growth. We find that exchange rate flexibility negatively affects economic growth, but this effect varies with the degree of financial market openness. Countries with high financial market openness benefit from maintaining high exchange rate flexibility, whereas the opposite is true for countries with low financial market openness. This empirical result implies that policymakers should consider the long-term growth effect when formulating exchange rate policy as it could be a useful policy option for emerging markets with limited policy independence. This is particularly relevant to policy coordination since greater exchange rate flexibility alone cannot solve the global imbalance.

scholarly journals Morocco

2020 ◽  
Vol 20 (14) ◽  
Author(s):  
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Labor Market ◽  
Euro Area ◽  
External Environment ◽  
Social Spending ◽  
Education Reforms ◽  
Exchange Rate Flexibility ◽  
Public Governance ◽  
Geopolitical Risks

Despite a challenging external environment, four successive PLL arrangements since 2012 have supported reforms to strengthen macroeconomic resilience, economic growth and inclusion. Yet, economic growth, below 3 percent, is not robust enough and unemployment remains high, especially among the youth and women. Growth is also subject to elevated risks, including weak economic growth in the euro area, and geopolitical risks. In this environment, Morocco needs to step up reforms to further enhance its macroeconomic resilience, build buffers, and move towards more private sector-led, inclusive and job-rich growth. Priority areas include: taxation; public governance and the fight against corruption; social spending to reduce inequalities; labor market and education reforms; and greater exchange rate flexibility.

National Currency Appreciation and Growth of the Russian Economy

2004 ◽  
pp. 95-111
Author(s):  
T. Zolotoukhina
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Money Supply ◽  
Capital Flows ◽  
National Currency ◽  
Economic Factors ◽  
Exchange Market ◽  
Russian Economy ◽  
Macroeconomic Indicators

The problem of interaction between Russian currency appreciation and positive dynamics of macroeconomic indicators is studied. Main economic factors of ruble appreciation are analyzed. Consequences of the Russian Central Bank's policy directed to oppose ruble appreciation and problems in financial area due to the increase of money supply through the exchange market are considered. Influence of exchange rate appreciation on economic growth, inflation, export, import, capital flows are discussed. It is concluded that Russian ruble appreciation stimulates an increase in efficiency of the Russian economy.

Investment Processes in the Russian Economy

2004 ◽  
pp. 4-27 ◽  
Author(s):  
V. Lisin
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Money Supply ◽  
Capital Flows ◽  
Economic Factors ◽  
Exchange Market ◽  
Russian Economy ◽  
Macroeconomic Indicators

The problem of interaction between Russian currency appreciation and positive dynamics of macroeconomic indicators is studied. Main economic factors of ruble appreciation are analyzed. Consequences of the Russian Central Bank's policy directed to oppose ruble appreciation and problems in financial area due to the increase of money supply through the exchange market are considered. Influence of exchange rate appreciation on economic growth, inflation, export, import, capital flows are discussed. It is concluded that Russian ruble appreciation stimulates an increase in efficiency of the Russian economy.

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