Does monetary policy stabilize the exchange rate following a currency crisis?

dc.contributorEscolas::EPGE
dc.contributorFGV
dc.creatorGoldfajn, Ilan
dc.creatorGupta, Poonam
dc.date.accessioned2014-10-23T12:41:03Z
dc.date.accessioned2019-05-22T14:32:19Z
dc.date.available2014-10-23T12:41:03Z
dc.date.available2019-05-22T14:32:19Z
dc.date.created2014-10-23T12:41:03Z
dc.date.issued1999-05-27
dc.identifierhttp://hdl.handle.net/10438/12201
dc.identifier.urihttp://repositorioslatinoamericanos.uchile.cl/handle/2250/2695255
dc.description.abstractThis paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It ana1yzes a large data set of currency crises in 80 countries in the period 1980 to 1998. The main question addressed is: can monetary policy significantly alter the probability of reversing the post-crisis undervaluation through nominal appreciation rather than higher int1ation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation rather than inflation. When the economy is also facing a banking crisis, depending on the specification, tight monetary policy may not have the same effect.
dc.languageeng
dc.publisherEscola de Pós-Graduação em Economia da FGV
dc.relationSeminários de pesquisa econômica da EPGE
dc.rightsTodo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveis
dc.subjectInterest rates
dc.subjectInflation
dc.subjectMonetary policy
dc.titleDoes monetary policy stabilize the exchange rate following a currency crisis?
dc.typeDocumentos de trabajo


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