This paper assesses the impact of economic policy uncertainty to UK monetary policy stance and exchange rate movements in light of the UK's decision to leave the European Union. Our results show that the economic significance of exchange rate movements heightens during the Referendum period. We...

This paper analyzes the causes of the massive peso devaluation of December 1994 and the ensuing economic crisis in Mexico. The paper argues that, while earlier devaluation might have been helpful, Mexico?s economic growth strategy in the early 1990s was fraught with internal inconsistencies that...

Dick Sabot, an active member of CGD's founding Board of Directors, was finishing this paper when he died suddenly on July 6 of 2005. The paper highlights the risks to developing countries posed by the growing U.S. external deficit and describes three possible scenarios. In the first, the US...

Policy makers face trade-off in dealing with exchange rate management, mo- netary independence and concerns about capital mobility simultaneously. This study empirically examines the effects of Nigeria's trilemma policy path on interest rate using data spanning from 1997:Q1 to 2017:Q3. It...

Este documento de trabajo provee un análisis empírico de la relación entre movimientos del tipo de cambio y los principales índices de precios en los países de la OECD. El análisis del trabajo esta centrado en cómo diferentes ambientes inflacionarios permitirían explicar el descenso en...

We develop novel high-frequency indices that measure climate attention across a wide range of developed and emerging economies. By analyzing the text of over 23 million Tweets published by leading national newspapers, we find that a country experiencing more severe climate news shocks tends to...

This paper studies the impact of real exchange rate volatility on firm level employment using a difference-in-difference model applied on a panel of 900 manufacturing firms. Trade exposure as measured by the difference between the shares of exports and imports in a firm's total revenues and...

In this paper, we examine whether a monetary authority targets the exchange rate, per se, or instead simply appears to do so as it responds to the exchange rate and other variables in service to inflation and output targets. We combine data-rich estimation with a system of forward-looking...

This empirical paper explores the important policy issue of whether or not LDCs can achieve a long-run real exchange rate devaluation through a nominal devaluation. For this purpose, tests for cointegration and the estimation of the long-run relationship between the real and nominal exchange...

This paper analyzes the relation between exchange rate volatility and several macroeconomic variables, namely real per capita output growth, the credit cycle, the stock of inward foreign direct investment (FDI) and the current account balance, in the Central and Eastern European EU Member...