The Effects of Exchange Rate Fluctuationson Output and Prices: Evidence From Developing Countries
IMF Working Papers, October 1, 2003
Source details
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- The Effects of Exchange Rate Fluctuationson Output and Prices: Evidence From Developing Countries
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Bibliographic details
- Authors: Magda E. Kandil, Ida Aghdas Mirzaie
- Published: October 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860184.001
Study scope and metadata
- Authors: Magda E. Kandil, Ida Aghdas Mirzaie
- Date: October 1, 2003
- Sample: 33 developing countries
- Pages: 32
- Volume: 2003
- Issue: 200
- Series: Working Paper No. 2003/200
- DOI: https://doi.org/10.5089/9781451860184.001
- Stock No: WPIEA2002003
- ISBN: 9781451860184
- ISSN: 1018-5941
Theoretical framework
- The model decomposes movements in the exchange rate into anticipated and unanticipated components.
- Channels analyzed:
- Aggregate demand effects via exports, imports, and the demand for domestic currency.
- Aggregate supply effects via the cost of imported intermediate goods.
Key findings
- Anticipated exchange rate depreciation:
- Through the supply channel, has limited effects on output growth and inflation.
- Unanticipated currency fluctuations:
- Appear more significant than anticipated movements.
- Have varying effects on output growth and price inflation across developing countries.
Topics and keywords covered
- Subject tags: Currencies, Energy pricing, Exchange rates, Expenditure, Foreign exchange, Inflation, Money, Prices, Real exchange rates
- Keywords: aggregate demand, anticipated vs. unanticipated appreciation, Currencies, currency appreciation, currency depreciation, energy price, energy price increase, Energy pricing, error correction term, exchange rate, exchange rate fluctuation, Exchange rates, Fluctuationson output, Inflation, money supply, output price, price deflation, price inflation, price surprise, production function, real and inflationary effects, Real exchange rates, supply vs. demand channels, WP
IMF Working Papers — The Effects of Exchange Rate Fluctuationson Output and Prices: Evidence From Developing Countries (Magda E. Kandil, Ida Aghdas Mirzaie), October 1, 2003.