Unité mixte de recherche 7235

Currency misalignments and economic growth: the foreign currency-denominated debt channel

Carl Grekou

[en]The literature on the growth effects of currency misalignments, although prolific, revolves around two main axes: one the one hand, the export-oriented growth literature which attributes positive effects to undervaluations (competitiveness gains) and, on the other hand, the Washington Consensus view according to which any deviations from equilibrium hamper economic growth. In this paper, we show that there is no « one size fits all » relationship in this regard. Indeed, relying on a panel of 72 developing and emerging countries, we evidence the existence of a foreign currency-denominated debt channel through which misalignments impact growth. Compared to the « traditional » competitiveness channel, this channel works in the opposite direction. The paper therefore reconciles the two strands of the literature: undervaluations may have indeed a positive growth effect, but it is crucial to take into account the possible costs related to this undervaluation to have a clearer picture of the net total effect.[/en]

AGENDA

lundi 5 décembre 2022

Law, Institutions and Economics in Nanterre (LIEN)

Vincent Lefrère (Institut Mines Telecom)

En salle 614 et en distanciel

Privacy, Data and Competition: The Case of Apps For Young Children

mardi 6 décembre 2022

Recherche et Economie et Socioéconomie Politique, des Institutions et des Régulations (RESPIR)

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Le rôle d’amortisseur des banques centrales – une perspective historique

jeudi 8 décembre 2022

Lunch

Georges Prat

12h - 13h, salle 110

Modeling ex-ante risk premiums in the oil market

lundi 12 décembre 2022

Law, Institutions and Economics in Nanterre (LIEN)

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En salle 614 et en distanciel

Unemployment Insurance Eligibility and Employment Duration

mardi 13 décembre 2022

Développement Durable Environnement et Energie (DDEE)

Nicolas Astier (Paris School of Economics)

16h-17h

Riding together: eliciting travelers’ preferences for long-distance carpooling

mercredi 14 décembre 2022

Économies du monde musulman

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The scientific wealth of nations with special reference to MENA region: a cross-country productivity analysis of academic research

jeudi 15 décembre 2022

Doctorants

Pablo Aguilar Perez

TBA

jeudi 15 décembre 2022

Groupe de travail « Intelligence artificielle »

Matthieu Lapaty (UPMC)

TBA

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