TY - JOUR
T1 - Do fixers perform worse than non-fixers during global recessions and recoveries?
AU - Terrones, Marco E.
N1 - Publisher Copyright:
© 2020
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/6
Y1 - 2020/6
N2 - There is an important debate about how economies with different exchange rate regimes performed during the Great Recession and its ensuing recovery. While economic theory suggests that economies with fixed exchange rates are more affected and recover more slowly from global shocks than economies with non-fixed exchange rates, the empirical evidence on the most recent global recession has been mixed. This paper uses dynamic panel models to examine how the exchange rate and economic growth nexus is affected by the four global recessions and recoveries the world economy has experienced post-Bretton Woods. While there is no robust long-term relationship between exchange rate regimes and growth, there is evidence that fixers recover from global recessions at a weaker pace than non-fixers. These findings are robust across the different de facto exchange rate regime measures.
AB - There is an important debate about how economies with different exchange rate regimes performed during the Great Recession and its ensuing recovery. While economic theory suggests that economies with fixed exchange rates are more affected and recover more slowly from global shocks than economies with non-fixed exchange rates, the empirical evidence on the most recent global recession has been mixed. This paper uses dynamic panel models to examine how the exchange rate and economic growth nexus is affected by the four global recessions and recoveries the world economy has experienced post-Bretton Woods. While there is no robust long-term relationship between exchange rate regimes and growth, there is evidence that fixers recover from global recessions at a weaker pace than non-fixers. These findings are robust across the different de facto exchange rate regime measures.
KW - Cycles
KW - Economic growth of open economies
KW - Exchange rates
KW - Global recessions and recoveries
KW - International cycles
UR - http://www.scopus.com/inward/record.url?scp=85080117000&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/ded50561-d3af-3129-87c2-646531af96f7/
U2 - 10.1016/j.jimonfin.2020.102160
DO - 10.1016/j.jimonfin.2020.102160
M3 - Artículo de revista
AN - SCOPUS:85080117000
SN - 0261-5606
VL - 104
JO - Journal of International Money and Finance
JF - Journal of International Money and Finance
M1 - 102160
ER -