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Does Monetary Policy Stabilize the Exchange Rate Following a Currency Crisis?
By:Mr. Ilan Goldfajn,Mrs. Poonam Gupta
Published on 1999-03-01 by International Monetary Fund

This paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It analyzes a large data set of currency crises in 80 countries for the period 1980-98. The main question addressed is: Can monetary policy increase the probability of reversing a postcrisis undervaluation through nominal appreciation rather than higher inflation? We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation. When the economy also faces a banking crisis, the results are not robust: depending on the specification, tight monetary policies may not have the same effect.
This Book was ranked at 12 by Google Books for keyword Currency crisis.
Book ID of Does Monetary Policy Stabilize the Exchange Rate Following a Currency Crisis?'s Books is BciVqMPiOKsC, Book which was written byMr. Ilan Goldfajn,Mrs. Poonam Guptahave ETAG "4WS6/bHt/qI"
Book which was published by International Monetary Fund since 1999-03-01 have ISBNs, ISBN 13 Code is 9781451893397 and ISBN 10 Code is 1451893396
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