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In emerging-market economies, real exchange rate adjustment is critical for maintaining a sustainable current account position and thereby for helping to reduce macroeconomic and financial instability. The authors examine empirically two related hypotheses: (i) that real exchange rate...
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Asia. We compare scenarios where both Chinese and other emerging Asian export prices change by the same proportion to the … case where export prices remain constant in one country and increase in the other. Our results are robust to different …
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