We document that, historically, although stronger growth in the U.S. increases growth in emerging markets, U.S. dollar appreciation (depreciation) cycles - which are highly persistent - mitigate (amplify) the impact on real GDP growth in emerging markets. We argue that the main transmission...

Theoretical models on the relationship between prices and exchange rates predict that the magnitude of expenditure switching affects the optimal choice of exchange rate regime. Focusing on the transmission of terms-of-trade shocks to domestic real variables we document that the magnitude of the...

We document that, historically, although stronger growth in the U.S. increases growth in emerging markets, U.S. dollar appreciation (depreciation) cycles—which are highly persistent—mitigate (amplify) the impact on real GDP growth in emerging markets. We argue that the main transmission...

Introduction : book in brief / Marcos Chamon, David Hofman, Nicolás E. Magud, and Alejandro Werner. Why intervene? / Marcos Chamon and NIcolás E. Magud -- A taxonomy of intervention / Oscar A. Hendrick, Nicolás E. Magud, and Asad Qureshi -- The effectiveness of intervention / Marcos Chamon,...

We use panel quantile regressions to study extreme (rather than average) movements in the distribution of the real effective exchange rate (REER). Global uncertainty (VIX) and financial conditions (U.S. monetary policy) shocks have a strong impact on the distribution of REER changes, with larger...

We use panel quantile regressions to study extreme (rather than average) movements in the distribution of the real effective exchange rate (REER) of small open economies. We document that global uncertainty (VIX) and global financial conditions (U.S. monetary policy) shocks have a strong impact...