Real Exchange Rates, Economic Complexity, and Investment

Real Exchange Rates, Economic Complexity, and Investment
We show that the response of firm-level investment to real exchange rate movements varies depending on the production structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency weakens, in line with the traditional Mundell-Fleming model. However, in other emerging market and... READ MORE...

Publication date: May 2018
ISBN 9781484354834
$18.00

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