What explains global exchange rate movements during the financial crisis?

Arbeitspapier

A striking and unexpected feature of the financial crisis has been the sharp appreciation of the US dollar against virtually all currencies globally. The paper finds that negative US-specific macroeconomic shocks during the crisis have triggered a significant strengthening of the US dollar, rather than a weakening. Macroeconomic fundamentals and financial exposure of individual countries are found to have played a key role in the transmission process of US shocks: in particular countries with low FX reserves, weak current account positions and high direct financial exposure vis-à-vis the United States have experienced substantially larger currency depreciations during the crisis overall, and to US shocks in particular.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 1060

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Foreign Exchange
• Thema: Exchange Rates ; financial crisis ; global imbalances ; shocks ; transmission channels ; United States ; US dollar ; Finanzkrise ; Wechselkurs ; Schock ; Außenwirtschaftliches Gleichgewicht ; US-Dollar ; USA

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fratzscher, Marcel
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2009

Weitere Informationen

• Handle: http://hdl.handle.net/10419/153494
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ