Bericht

The macroeconomic effects of exchange rate movements

The macroeconomic effects of exchange rate movements have been subject to an extensive debate in international economics. Traditionally, much of the discussion was focused on the relation between the effective exchange rate and the trade balance. However, the process of financial globalization has led to a sharp increase in foreign asset and liability positions across countries and also to a greater dispersion in foreign currency positions, with many countries being either large net creditors or net debtors in foreign currency. This has shifted the focus of the discussion from the trade balance to the external balance sheets of countries. This Roundup provides a brief overview of the literature on the macroeconomic impact of exchange rate movements.

Language
Englisch

Bibliographic citation
Series: DIW Roundup: Politik im Fokus ; No. 121

Classification
Wirtschaft

Event
Geistige Schöpfung
(who)
Anaya, Pablo
Hasenclever, Stefan
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2018

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Bericht

Associated

  • Anaya, Pablo
  • Hasenclever, Stefan
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2018

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