Gradual Versus Big-Bang Devaluations An Empirical Analysis
This paper examines the pros and cons of gradual versus big-bang approaches toward devaluations. It presents original empirical evidence regarding output, consumption, investment and trade balances associated with gradual and big-bang devaluation episodes. It finds that big-bang devaluations are ass...
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Other Authors: | , |
Format: | eBook |
Language: | English |
Published: |
Washington, D.C
The World Bank
2018
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Series: | World Bank E-Library Archive
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Online Access: | |
Collection: | World Bank E-Library Archive - Collection details see MPG.ReNa |
Summary: | This paper examines the pros and cons of gradual versus big-bang approaches toward devaluations. It presents original empirical evidence regarding output, consumption, investment and trade balances associated with gradual and big-bang devaluation episodes. It finds that big-bang devaluations are associated with lower output, investment and consumption, while gradual devaluations are not associated with any contemporaneous drops. Five case studies of gradual devaluations are also conducted |
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