Impact of exchange rate volatility on Indonesia's trade performance in the 1990s
AbstractWhether a real devaluation ultimately proves to be expansionary or contractionary depends on whether the boost given to the exportables sector offsets any possible output-depressing effects that may accompany the expenditure-switching policy. Failure of the exportables sector to adequately respond to the price incentives is a virtual guarantee that devaluation will be contractionary. This appears to have been the experience of Indonesia, the country worst hit by the crisis of 1997-98. This paper explores whether the increased exchange rate variability of the Indonesian rupiah post 1997 may have been a cause for the countryÃâs poor export performance.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of the Japanese and International Economies.
Volume (Year): 18 (2004)
Issue (Month): 2 (June)
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Other versions of this item:
- Reza Siregar & Ramkishen Rajan, 2002. "Impact of Exchange Rate Volatility on IndonesiaÂ’s Trade Performance in the 1990s," Centre for International Economic Studies Working Papers 2002-05, University of Adelaide, Centre for International Economic Studies.
- F30 - International Economics - - International Finance - - - General
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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