When and Why Worry About Real Exchange Rate Appreciation? The Missing Link Between Dutch Disease and Growth

When and Why Worry About Real Exchange Rate Appreciation? The Missing Link Between Dutch Disease and Growth
We review the literature on Dutch disease, and document that shocks that trigger foreign exchange inflows (such as natural resource booms, surges in foreign aid, remittances, or capital inflows) appreciate the real exchange rate, generate factor reallocation, and reduce manufacturing output and net exports. We also observe that real exchange... READ MORE...

Publication date: December 2010
ISBN 9781455210787
$18.00

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