Gradual Versus Big-Bang Devaluations

• Tác giả: Michael Geiger
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.41 Value of money
• Thông tin xuất bản: World Bank, Washington, DC, 2018
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 328942
• Chủ đề: 1. CAPITAL FLOWS; 2. CURRENCY DEVALUATION; 3. INVESTMENT; 4. MONETARY POLICY; 5. TRADE BALANCE

Tóm tắt

This paper examines the pros and cons of gradual versus big-bang approaches toward devaluations. It presents original empirical evidence regarding output, consumption, investment and trade balances associated with gradual and big-bang devaluation episodes. It finds that big-bang devaluations are associated with lower output, investment and consumption, while gradual devaluations are not associated with any contemporaneous drops. Five case studies of gradual devaluations are also conducted.