In this paper, we revisit the relationship between economic growth and exchange rate misalignments, especially … on growth depends on institutional quality as suggested in previous literature. First, we separate countries into groups … according to their institutional quality using the cluster analysis. Then, we estimate the relationship between growth and …

The impact of real exchange rate movements on GDP growth is a hotly debated issue both in policy and academic circles … growth for a broad panel of countries. Controlling for country fixed effects, time effects and initial GDP, a more … depreciated currency is associated with higher growth. However, this positive association vanishes after controlling for the …

impact of deviations from the long-run sustainable real exchange rate equilibrium on real economic growth rate applying panel … main objectives is to determine the relationship between REER misalignments and economic growth trying to differentiate … between short- and long-run effects. To this purpose, a neoclassical growth model is considered controlling for several …

single currency is the root of all evil are both wrong. A euro exit could be a way of getting back to growth, but at the same … of the past is that the outcome, in terms of growth, distribution, and employment, depends on how a country remains in …

-run equilibrium characteristic of a two-region model with fixed exchange rates, heterogeneous labor markets, and endogenous growth …. Under flexible exchange rates, monetary policy closes output gaps and realizes the associated maximum TFP growth in both … regions. Upon fixing exchange rates, the region with higher structural wage inflation falls into a low-growth trap. When …