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increases in domestic inflation. We show that one way to understand these episodes is as manifestations of balance of payments … accelerating fashion and, if the government targets CPI inflation, by fast increasing domestic inflation …
Persistent link: https://www.econbiz.de/10013157769
increases in domestic inflation. We show that one way to understand these episodes is as manifestations of balance of payments … accelerating fashion and, if the government targets CPI inflation, by fast increasing domestic inflation …
Persistent link: https://www.econbiz.de/10014404291
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steady state levels of the real exchange rate and inflation. After calibration, the model predicts an 8.5% real … undervaluation of the Russian currency and a 13.7% undervaluation of the Chinese currency. Predicted inflation is found to match …
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"This paper examines the degree to which the learning by doing externality [LBD] calls for an undervalued exchange rate, a policy suggested by recent empirical studies which concluded that mildly undervalued real exchange rate may enhance growth. We obtain mixed results. For an economy where LBD...
Persistent link: https://www.econbiz.de/10003681919