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dc.contributor.authorMelander, Olaen_US
dc.date.accessioned2012-02-15en_US
dc.date.accessioned2012-03-28T13:10:32Z-
dc.date.available2012-03-28T13:10:32Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/56333-
dc.description.abstractThis paper studies the effects of real exchange rate depreciation in an economy with extreme liability dollarization using vector autoregression (VAR) methods. Bolivia's extreme liability dollarization makes it an interesting case for empirical testing of the contractionary-depreciations hypothesis. In contrast to the previous contractionary-depreciations literature, the paper uses identification assumptions which are inspired by modern macroeconomic theory and common in the empirical VAR literature on the effects of monetary policy. I find that a real exchange rate depreciation has negligible effects on output, since a contractionary balance-sheet effect on investment is counteracted by the standard expansionary effect on net exports. Furthermore, I find that a real depreciation has inflationary effects. A key finding is that the identification assumptions used in this paper gives more reasonable results than alternative assumptions used in the previous literature.en_US
dc.language.isoengen_US
dc.publisherEkonomiska Forskningsinst. Stockholmen_US
dc.relation.ispartofseriesSSE/EFI Working Paper Series in Economics and Finance 715en_US
dc.subject.jelE44en_US
dc.subject.jelF41en_US
dc.subject.jelG15en_US
dc.subject.ddc330en_US
dc.subject.keywordReal exchange rateen_US
dc.subject.keywordVARen_US
dc.subject.keywordliability dollarizationen_US
dc.subject.keywordbalance sheet effectsen_US
dc.subject.keywordcontractionary depreciationen_US
dc.subject.stwKaufkraftparitäten_US
dc.subject.stwVAR-Modellen_US
dc.subject.stwWährungssubstitutionen_US
dc.subject.stwZahlungsbilanzen_US
dc.subject.stwNeue Makroökonomik offener Volkswirtschaftenen_US
dc.subject.stwBolivienen_US
dc.titleThe effects of real exchange rate shocks in an economy with extreme liability dollarizationen_US
dc.typeWorking Paperen_US
dc.identifier.ppn598213716en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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