What Happened to Asian Exports During the Crisis?
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Summary:
After the large exchange rate depreciations following the 1997 East Asian crisis, export volumes from East Asian countries responded with a notable lag. Two main explanations for this lag have been proposed: that the policy of high interest rates limited access to domestic credit and hence limited the supply of exports; and that “competitive depreciation” neutralized the effects on demand for exports. This paper considers the plausibility of these two mechanisms using a new monthly database on exports of selected industries. We find evidence that “competitive depreciation” did play a fundamental role in the propagation of the East Asian crisis through the trade channel, even at a monthly frequency.
Series:
Working Paper No. 2000/200
Subject:
Depreciation Domestic credit Export earnings Export prices Exports International trade Money National accounts Prices
English
Publication Date:
December 1, 2000
ISBN/ISSN:
9781451860153/1018-5941
Stock No:
WPIEA2002000
Pages:
31
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