{
  "title": "The Real Exchange Rate and Growth Revisited: The Washington Consensus Strikes Back?",
  "publication": "IMF Working Papers, March 1, 2010",
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  "summary": "There is good reason and much evidence to suggest that the real exchange rate matters for economic growth, but why? The \"Washington Consensus\" (WC) view holds that real exchange rate misalignment implies macroeconomic imbalances that are themselves bad for growth.",
  "sections": [
    {
      "heading": "Authors and publication",
      "content": "- By Andrew Berg, Yanliang Miao\n- March 1, 2010\n- Working Paper No. 2010/058\n- Pages: 24\n- Volume: 2010\n- Issue: 058\n- DOI: https://doi.org/10.5089/9781451963755.001\n- Stock No: WPIEA2010058\n- ISBN: 9781451963755\n- ISSN: 1018-5941"
    },
    {
      "heading": "Research question and competing views",
      "content": "- The paper examines why the real exchange rate matters for economic growth.\n- Washington Consensus (WC) view:\n  - Real exchange rate misalignment implies macroeconomic imbalances that are themselves bad for growth.\n- Rodrik (2008) view:\n  - Undervaluation relative to purchasing power parity promotes the otherwise inefficiently small tradable sector and is therefore good for growth."
    },
    {
      "heading": "Main empirical result",
      "content": "- The WC and Rodrik views are observationally equivalent for the main growth regressions reported by Rodrik (2008).\n- Confirmed empirical findings:\n  - Overvaluations are bad for growth.\n  - Undervaluations are good for growth.\n  - Both results are consistent with the Rodrik story; the WC viewpoint can also be made consistent but requires additional interpretation (\"some gymnastics\")."
    },
    {
      "heading": "Identification challenge",
      "content": "- There is an identification problem:\n  - Determinants of misalignment are also likely to be independent drivers of growth.\n  - Growth regressions of the type used are hard-pressed to disentangle the different channels linking misalignment and growth."
    },
    {
      "heading": "Subjects and keywords",
      "content": "- Subject: Exchange rates, Government consumption, Purchasing power parity, Real exchange rates, Terms of trade\n- Keywords: dependent variable, WP\n\nSource: IMF Working Paper — \"The Real Exchange Rate and Growth Revisited: The Washington Consensus Strikes Back?\", Andrew Berg and Yanliang Miao, March 1, 2010.\n\n---\n\n Content in this bundle\n\n- wp1058\n  - wp1058 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1058 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-real-exchange-rate-and-growth-revisited-the-washington-consensus-strikes-back-23684"
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    "Authors: Andrew Berg, Yanliang Miao",
    "Published: March 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451963755.001",
    "By Andrew Berg, Yanliang Miao",
    "March 1, 2010",
    "Working Paper No. 2010/058",
    "Pages: 24",
    "Volume: 2010",
    "Issue: 058",
    "DOI: https://doi.org/10.5089/9781451963755.001",
    "Stock No: WPIEA2010058",
    "ISBN: 9781451963755",
    "ISSN: 1018-5941",
    "The paper examines why the real exchange rate matters for economic growth.",
    "Washington Consensus (WC) view:",
    "Rodrik (2008) view:",
    "The WC and Rodrik views are observationally equivalent for the main growth regressions reported by Rodrik (2008).",
    "Confirmed empirical findings:",
    "There is an identification problem:",
    "Subject: Exchange rates, Government consumption, Purchasing power parity, Real exchange rates, Terms of trade",
    "Keywords: dependent variable, WP",
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