Real Exchange Rate Effects of Fiscal Expansion under Trade Restrictions

1997 ◽  
Vol 30 (1) ◽  
pp. 42 ◽  
Author(s):  
Panos Hatzipanayotou ◽  
Michael S. Michael
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Trade Restrictions ◽  
Rate Effects

scholarly journals Real exchange rate and innovation: empirical evidences

2018 ◽  
Vol 38 (2) ◽  
pp. 280-303 ◽  
Author(s):  
KEYNIS CÂNDIDO DE SOUTO ◽  
MARCO FLÁVIO CUNHA RESENDE
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Transmission Mechanism ◽  
The Real ◽  
Considerable Portion ◽  
Rate Effects ◽  
Recent Debate ◽  
The Relationship

ABSTRACT The recent debate on the determinants of the lung-run economic growth highlights the role of a competitive and stable real exchange rate to foster growth. In this debate, the works follow two approaches: theoretical and empirical. In the theoretical approach a considerable portion of the works points towards the innovation as a transmission mechanism of the real exchange rate effects on income. These works emphasize that the real exchange rate affects growth because of its impacts on the determinants of innovation, such as investment. Despite the theoretical debate, the focus of empirical works is on the analysis of the exchange rate effects on income while the relationship between exchange rate and innovation remains untapped. This article seeks to contribute to the literature by providing empirical evidence that supports the link between the real exchange rate and innovation.

scholarly journals What Determines the Behaviour of Real Exchange Rate in Pakistan?

1993 ◽  
Vol 32 (4II) ◽  
pp. 1015-1029 ◽  
Author(s):  
Salim Chishti ◽  
M.A Ynul Hasan
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Foreign Exchange Markets ◽  
Adjustment Process ◽  
Trade Restrictions ◽  
The Real ◽  
Exchange Markets ◽  
The Exchange Rate

It is now widely acknowledged that the role of the real exchange rate is crucial in the adjustment process of the economy. While exchange rates are, generally, relative prices of national currencies under a floating rate regime, they may be viewed as being determined by the interaction of supply and demand in the foreign exchange markets. This premise, though uncontentious, renders simply a beginning for comprehending the determination of the exchange rate and its ensuing relationship to various macroeconomic variables and to policy. It has been argued rather forcefully [e.g., Edwards and Wijnbergen (1987); Edwards (1988, 1988a); Khan (1986); Khan and Lizondo (1987)] that any analysis in this regard to be labelled as comprehensive would characterise the exchange rate as being detc;:rmined by a complex process of interaction simultaneously with other variables in tbe national and international macroeconomy rather than being determined simply by 'purchasing power parity' (PPP) as proposed by Cassel (1918). Citing Cassel's writings in this context, Officer (1976) noted the reasons for such a departure from a stable relationship between the real exchange rate and the PPP as being due to frequent trade restrictions, distorted tariff policies, speculations in the 'foreign exchange market, large capital outflows, government's heavy handed ~intervention in the foreign exchange markets, etc.

scholarly journals Modelling real exchange rate effects on output performance in Latin America

2010 ◽  
Vol 42 (19) ◽  
pp. 2491-2503 ◽  
Author(s):  
Pablo Mejía-Reyes ◽  
Denise R. Osborn ◽  
Marianne Sensier
Keyword(s):  
Latin America ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Output Performance ◽  
Rate Effects
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