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The Macroeconomic Effects of Large Exchange Rate Appreciations

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  • Kappler, Marcus
  • Reisen, Helmut
  • Schularick, Moritz
  • Turkisch, Edouard

Abstract

In this paper we study the macroeconomic aftermath of large exchange rate appreciations. Using a sample of 128 countries over the period 1960–2008, we identify 25 episodes of large nominal and real appreciations shocks. We use narrative identification of exogenous appreciation episodes and study the macroeconomic effects in a dummy-augmented panel autoregressive model.

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  • Kappler, Marcus & Reisen, Helmut & Schularick, Moritz & Turkisch, Edouard, 2013. "The Macroeconomic Effects of Large Exchange Rate Appreciations," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 471-494.
  • Handle: RePEc:zbw:espost:122944
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    More about this item

    Keywords

    Current account adjustment; Global imbalances;

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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