It takes the average reader and 53 minutes to read Limits of Floating Exchange Rates by Mr.Sebastian Weber
Assuming a reading speed of 250 words per minute. Learn more
A traditional argument in favor of flexible exchange rates is that they insulate output better from real shocks, because the exchange rate can adjust and stabilize demand for domestic goods through expenditure switching. This argument is weakened in models with high foreign currency debt and low exchange rate pass-through to import prices. The present study evaluates the empirical relevance of these two factors. We analyze the transmission of real external shocks to the domestic economy under fixed and flexible exchange rate regimes for a broad sample of countries in a Panel VAR and let the responses vary with foreign currency indebtedness and import structure. We find that flexible exchange rates do not insulate output better from external shocks if the country imports mainly low pass-through goods and can even amplify the output response if foreign indebtedness is high.
Limits of Floating Exchange Rates by Mr.Sebastian Weber is 53 pages long, and a total of 13,409 words.
This makes it 18% the length of the average book. It also has 16% more words than the average book.
The average oral reading speed is 183 words per minute. This means it takes 1 hour and 13 minutes to read Limits of Floating Exchange Rates aloud.
Limits of Floating Exchange Rates is suitable for students ages 8 and up.
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