Exchange Rate Volatility and Productivity Growth: The Role of Financial Development

Détails

ID Serval
serval:BIB_158E4392E48B
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Institution
Titre
Exchange Rate Volatility and Productivity Growth: The Role of Financial Development
Périodique
Journal of Monetary Economics
Auteur⸱e⸱s
Aghion P., Bacchetta P., Rancière R., Rogoff K.
ISSN
0304-3932
Statut éditorial
Publié
Date de publication
05/2009
Peer-reviewed
Oui
Volume
56
Numéro
4
Pages
494-513
Langue
anglais
Résumé
The vast empirical exchange rate literature finds the effect of exchange rate volatility on real activity to be small or insignificant. In contrast, this paper offers empirical evidence that real exchange rate volatility can have a significant impact on productivity growth. However, the effect depends critically on a country's level of financial development. The results appear robust to time window, alternative measures of financial development and exchange rate volatility, and outliers. We also offer a simple monetary growth model in which real exchange rate uncertainty exacerbates the negative investment effects of domestic credit market constraints.
Mots-clé
Exchange rate regime, Financial development and growth
Web of science
Création de la notice
30/03/2009 13:34
Dernière modification de la notice
20/08/2019 13:44
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