Does monetary policy stabilize the exchange rate following a currency crisis?

Detalhes bibliográficos
Autor(a) principal: Goldfajn, Ilan
Data de Publicação: 1999
Outros Autores: Gupta, Poonam
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
Texto Completo: http://hdl.handle.net/10438/12201
Resumo: This paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It ana1yzes a large data set of currency crises in 80 countries in the period 1980 to 1998. The main question addressed is: can monetary policy significantly alter the probability of reversing the post-crisis undervaluation through nominal appreciation rather than higher int1ation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation rather than inflation. When the economy is also facing a banking crisis, depending on the specification, tight monetary policy may not have the same effect.
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spelling Goldfajn, IlanGupta, PoonamEscolas::EPGEFGV2014-10-23T12:41:03Z2014-10-23T12:41:03Z1999-05-27http://hdl.handle.net/10438/12201This paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It ana1yzes a large data set of currency crises in 80 countries in the period 1980 to 1998. The main question addressed is: can monetary policy significantly alter the probability of reversing the post-crisis undervaluation through nominal appreciation rather than higher int1ation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation rather than inflation. When the economy is also facing a banking crisis, depending on the specification, tight monetary policy may not have the same effect.engEscola de Pós-Graduação em Economia da FGVSeminários de pesquisa econômica da EPGETodo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessInterest ratesInflationMonetary policyEconomiaPolítica monetáriaTaxas de jurosInflaçãoDoes monetary policy stabilize the exchange rate following a currency crisis?info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL000088983.pdf000088983.pdfapplication/pdf1008468https://repositorio.fgv.br/bitstreams/c531d665-5a42-42ac-b3eb-925c434b018f/downloadbe26e192d667f53cbe655851120c6643MD51LICENSElicense.txtlicense.txttext/plain; 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dc.title.eng.fl_str_mv Does monetary policy stabilize the exchange rate following a currency crisis?
title Does monetary policy stabilize the exchange rate following a currency crisis?
spellingShingle Does monetary policy stabilize the exchange rate following a currency crisis?
Goldfajn, Ilan
Interest rates
Inflation
Monetary policy
Economia
Política monetária
Taxas de juros
Inflação
title_short Does monetary policy stabilize the exchange rate following a currency crisis?
title_full Does monetary policy stabilize the exchange rate following a currency crisis?
title_fullStr Does monetary policy stabilize the exchange rate following a currency crisis?
title_full_unstemmed Does monetary policy stabilize the exchange rate following a currency crisis?
title_sort Does monetary policy stabilize the exchange rate following a currency crisis?
author Goldfajn, Ilan
author_facet Goldfajn, Ilan
Gupta, Poonam
author_role author
author2 Gupta, Poonam
author2_role author
dc.contributor.unidadefgv.por.fl_str_mv Escolas::EPGE
dc.contributor.affiliation.none.fl_str_mv FGV
dc.contributor.author.fl_str_mv Goldfajn, Ilan
Gupta, Poonam
dc.subject.eng.fl_str_mv Interest rates
Inflation
Monetary policy
topic Interest rates
Inflation
Monetary policy
Economia
Política monetária
Taxas de juros
Inflação
dc.subject.area.por.fl_str_mv Economia
dc.subject.bibliodata.por.fl_str_mv Política monetária
Taxas de juros
Inflação
description This paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It ana1yzes a large data set of currency crises in 80 countries in the period 1980 to 1998. The main question addressed is: can monetary policy significantly alter the probability of reversing the post-crisis undervaluation through nominal appreciation rather than higher int1ation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation rather than inflation. When the economy is also facing a banking crisis, depending on the specification, tight monetary policy may not have the same effect.
publishDate 1999
dc.date.issued.fl_str_mv 1999-05-27
dc.date.accessioned.fl_str_mv 2014-10-23T12:41:03Z
dc.date.available.fl_str_mv 2014-10-23T12:41:03Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10438/12201
url http://hdl.handle.net/10438/12201
dc.language.iso.fl_str_mv eng
language eng
dc.relation.ispartofseries.por.fl_str_mv Seminários de pesquisa econômica da EPGE
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.publisher.none.fl_str_mv Escola de Pós-Graduação em Economia da FGV
publisher.none.fl_str_mv Escola de Pós-Graduação em Economia da FGV
dc.source.none.fl_str_mv reponame:Repositório Institucional do FGV (FGV Repositório Digital)
instname:Fundação Getulio Vargas (FGV)
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institution FGV
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collection Repositório Institucional do FGV (FGV Repositório Digital)
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