-varying relationship between openness and growth over time: countries tend to gain in the short-term, immediately following capital account …No empirical evidence has yet emerged for the existence of a robust positive relationship between financial openness … and economic growth. This paper argues that a key reason for the elusive evidence is the presence of a time …

growth and output trend. Our main finding is that currency collapses are associated with a permanent output loss relative to … output. More generally, we also find that the likelihood of a positive growth rate in the year of the collapse is over two … times more likely than a contraction, and that positive growth rates in the years that follow such episodes are the norm …

We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on … of the conditional exogenous exchange rate volatility on the conditional mean of the endogenous variables in our open … empirically. In the second part, we investigate the effect of non-fundamental exchange rate volatility in a stochastic open …

to filling this gap by proposing a theoretical model that links currency and maturity mismatches with real volatility in … tilts the debt profile towards short term debt, thereby increasing the volatility of output. Taking the model implications …