Unité mixte de recherche 7235

On the effectiveness of devaluations in emerging and developing countries

Carl Grekou

[en]In this paper, we address the issue of devaluations’ effectiveness by investigating to what extent a nominal devaluation leads to a real depreciation. Beyond the traditional factors identified by the literature, we pay particular attention to the size of the nominal devaluation and to the initial misalignment of the real exchange rate. Using a sample of 57 devaluation episodes (in 40 developing and emerging countries) and relying on panel data techniques, we evidence that the existence of a sizeable overvaluation of the real exchange rate is a prerequisite to ensure that nominal devaluations will have an expected effect in terms of real depreciations. Furthermore, our results put forward a potential nonlinear relationship between the size of the devaluation and the effectiveness of the nominal adjustment: devaluations operate more efficiently when the magnitude of the nominal adjustment is lower.[/en]

AGENDA

vendredi 2 juin 2023

Rencontres économiques

9h30 à 11h30

Le renouveau industriel français est-il encore possible ?

jeudi 8 juin 2023

Doctorants

Sahil Chopra (Université Sorbonne Paris-Nord)

Economics of litigation : Securities class action with third-party funding

lundi 12 juin 2023

Law, Institutions and Economics in Nanterre (LIEN)

Arthur Silve (IAST / Univ. Laval)

TBA

jeudi 15 juin 2023

Lunch

Guillaume Pierné

TBA

lundi 19 juin 2023

Law, Institutions and Economics in Nanterre (LIEN)

Juan Mora-Sanguinetti (Banco de Espana)

TBA

jeudi 22 juin 2023

Doctorants

Jules Chaperon

TBA

vendredi 1 septembre 2023

Professeurs invités

Ken Yahagi

lundi 18 septembre 2023

Colloques et Workshops

L’économie de la régulation entre intérêt public et intérêts privés : capture, conflits d’intérêts et revolving doors

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