Section 1: Exchange rate devaluation. he dictator ́s key policy instruments to enforce autarchism before 1959 support an overvalued fixed exchange rate to promote import substitution. But inflation was 54 …

A negative supply shock will depreciate the coun-try’s currency, with contractionary effects on the rest of the world’s goods, specie, and capital.

What caused Argentina’s crisis? External forces provoked a recession. The East Asian currency crisis of 1997-98 and the Russian currency crisis of August 1998 made investors in developed countries …

When q > 0, prices at home are too high relative to those abroad, and the currency is said to be “overvalued in real terms”, and vice-versa. If there is a tendency for the real rate to revert to it PPP …

The paper is organized as follows. This section simply summarizes developments since the regime change in July 2005. Section II then discusses four key challenges facing the Chinese authorities in …

When a country's currency is undervalued (overvalued), its exports are more (less) competitive than foreign goods in international markets. Misalignment can be de ned as the departure either avoid …

– Here's how it works: Unlike the dollar, the euro or the yen, whose values fluctuate freely, China's currency is pegged to the dollar by official policy. At this exchange rate, Chinese manufacturing has …