Exchange rate undervaluation and economic growth: Díaz Alejandro (1965) revisited ☆

By P. Gluzmann, Eduardo Levy-Yeyati, Federico Sturzenegger. 2012

153 citations recorded by the source corpus.

To understand the growth effects of currency undervaluation we estimate its impact on the different components of GDP. We find that, for developing countries, undervaluation does not affect the tradable sector, but does lead to greater domestic savings and investment, as well as employment.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/4b422120f534a0ef4ca4763ea8ec4cd2e12c330e

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. E. Mileva
2. M. Habib
3. Livio Stracca

In Finance

1. E. Mileva
2. M. Habib
3. Livio Stracca

Citations in the corpus

• The Real Exchange Rate and Economic Growth: Revisiting the Case Using External Instruments (2017, background): “Finally, ECB Working Paper 1921, June 2016 7 Glüzmann et al. (2012) find that undervaluation does not affect the tradable sector, but does lead to greater domestic savings and investment, as well as employment, in developing countries.”