Exchange rate regimes, devaluations and growth collapses
The loss of output in major recessions tends to be permanent. Using IMF de facto exchange rate regime classifications over the period 1980 to 2012 for up to 193 countries, it is shown that growth collapses are more frequent under less flexible exchange rate regimes, and particularly hard pegs. Among...
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| Format: | Article |
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Elsevier
2018
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| Online Access: | https://eprints.nottingham.ac.uk/51798/ |
| _version_ | 1848798577138073600 |
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| author | Bleaney, Michael Saxena, Sweta Yin, Lin |
| author_facet | Bleaney, Michael Saxena, Sweta Yin, Lin |
| author_sort | Bleaney, Michael |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | The loss of output in major recessions tends to be permanent. Using IMF de facto exchange rate regime classifications over the period 1980 to 2012 for up to 193 countries, it is shown that growth collapses are more frequent under less flexible exchange rate regimes, and particularly hard pegs. Amongst intermediate regimes, those with recent devaluations are less likely to experience a growth collapse, which confirms the role of exchange rate adjustment in reducing the output effects of a negative shock. Our findings are robust to the marked shift in the pattern of growth collapses after the global financial crisis. |
| first_indexed | 2025-11-14T20:21:59Z |
| format | Article |
| id | nottingham-51798 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:21:59Z |
| publishDate | 2018 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-517982020-05-04T19:49:26Z https://eprints.nottingham.ac.uk/51798/ Exchange rate regimes, devaluations and growth collapses Bleaney, Michael Saxena, Sweta Yin, Lin The loss of output in major recessions tends to be permanent. Using IMF de facto exchange rate regime classifications over the period 1980 to 2012 for up to 193 countries, it is shown that growth collapses are more frequent under less flexible exchange rate regimes, and particularly hard pegs. Amongst intermediate regimes, those with recent devaluations are less likely to experience a growth collapse, which confirms the role of exchange rate adjustment in reducing the output effects of a negative shock. Our findings are robust to the marked shift in the pattern of growth collapses after the global financial crisis. Elsevier 2018-09-30 Article PeerReviewed Bleaney, Michael, Saxena, Sweta and Yin, Lin (2018) Exchange rate regimes, devaluations and growth collapses. Journal of Macroeconomics, 57 . pp. 15-25. ISSN 0164-0704 exchange rate regimes devaluations growth collapses global financial crisis https://www.sciencedirect.com/science/article/pii/S0164070418300594?via%3Dihub doi:10.1016/j.jmacro.2018.05.002 doi:10.1016/j.jmacro.2018.05.002 |
| spellingShingle | exchange rate regimes devaluations growth collapses global financial crisis Bleaney, Michael Saxena, Sweta Yin, Lin Exchange rate regimes, devaluations and growth collapses |
| title | Exchange rate regimes, devaluations and growth collapses |
| title_full | Exchange rate regimes, devaluations and growth collapses |
| title_fullStr | Exchange rate regimes, devaluations and growth collapses |
| title_full_unstemmed | Exchange rate regimes, devaluations and growth collapses |
| title_short | Exchange rate regimes, devaluations and growth collapses |
| title_sort | exchange rate regimes, devaluations and growth collapses |
| topic | exchange rate regimes devaluations growth collapses global financial crisis |
| url | https://eprints.nottingham.ac.uk/51798/ https://eprints.nottingham.ac.uk/51798/ https://eprints.nottingham.ac.uk/51798/ |