IDEAS home Printed from https://ideas.repec.org/a/mes/jeciss/v46y2012i2p313-322.html
   My bibliography  Save this article

Exchange Rate Behavior During the Great Recession

Author

Listed:
  • John Harvey

Abstract

This paper offers a post-Keynesian/institutionalist explanation of the dollar-euro exchange rate around and during the Great Recession. It is shown that, consistent with theory, the financial sector played a dominant role. Capital flows drove foreign exchange rates, causing both mis-determination and tremendous volatility, and the real economy was forced to adjust to the conditions they created (a line of causation, incidentally, precisely the opposite of that suggested by Neoclassicism). Among the paper's conclusions are that currency price swings were clearly excessive, exchange rate fluctuations contributed to the sluggish recovery, and portfolio capital flows must be strictly controlled if these are to be avoided.

Suggested Citation

  • John Harvey, 2012. "Exchange Rate Behavior During the Great Recession," Journal of Economic Issues, Taylor & Francis Journals, vol. 46(2), pages 313-322.
    • Handle: RePEc:mes:jeciss:v:46:y:2012:i:2:p:313-322
    DOI: 10.2753/JEI0021-3624460206
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/JEI0021-3624460206
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/JEI0021-3624460206?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Charles J. Whalen, 2020. "Post-Keynesian institutionalism: past, present, and future," Evolutionary and Institutional Economics Review, Springer, vol. 17(1), pages 71-92, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:jeciss:v:46:y:2012:i:2:p:313-322. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MJEI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.