at Google ScholarTitle data
Erler, Alexander ; Sirries, Steffen ; Bauer, Christian ; Herz, Bernhard:
Exchange Market Pressure and Monetary Policy in Emerging Market Economies : New Evidence from Treatment-effect Estimations.
In: Review of Development Economics.
Vol. 19
(2015)
Issue 3
.
- pp. 470-485.
ISSN 1467-9361
DOI: https://doi.org/10.1111/rode.12169
Abstract in another language
The way central banks react to exchange market pressure is likely to affect the subsequent economic development and the associated economic costs. In a situation of currency pressure the central bank can in principle decide to let the currency float freely, to maintain the peg or to implement a managed float policy, i.e. a mix of depreciation and intervention. As the central bank's choices are subject to self selection and endogeneity, we use propensity score matching to adequately cope with these methodical challenges. We find that monetary authorities have two options to keep down the economic costs in terms of output, namely stabilizing the exchange rate or letting the currency float freely. In contrast, a managed float under currency pressure is accompanied by the worst possible outcome with an average loss of gross domestic product (GDP) between 5% and 6%.
Further data
| Item Type: | Article in a journal |
|---|---|
| Refereed: | Yes |
| Institutions of the University: | Faculties Faculties > Faculty of Law, Business and Economics Faculties > Faculty of Law, Business and Economics > Department of Economics Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics I - International Economics and Finance > Chair Economics I - International Economics and Finance - Univ.-Prof. Dr. Bernhard Herz |
| Result of work at the UBT: | Yes |
| DDC Subjects: | 300 Social sciences > 330 Economics |
| Date Deposited: | 30 Nov 2017 08:05 |
| Last Modified: | 20 Oct 2022 10:45 |
| URI: | https://eref.uni-bayreuth.de/id/eprint/40597 |