000004128 001__ 4128
000004128 005__ 20250213113209.0
000004128 037__ $$aBOOK
000004128 245__ $$aLimits of floats: the role of foreign currency debt and import structure
000004128 260__ $$aGeneva$$bThe Graduate Institute of International and Development Studies$$c2010
000004128 269__ $$a2010
000004128 300__ $$a37 p.
000004128 336__ $$aPapers and Reports
000004128 490__ $$aHEID Working Paper ; 1/2010
000004128 520__ $$athat 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 a model with high foreign currency debt and low exchange rate pass through to import prices. 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.
000004128 700__ $$aTowbin, Pascal
000004128 700__ $$aWeber, Sebastian
000004128 8564_ $$96f19dc79-8b23-491d-9e3b-c499f812be3c$$s398975$$zAccess to files$$uhttps://repository.graduateinstitute.ch/record/4128/files/WP-2011-039.pdf
000004128 901__ $$uInternational Economics Department$$0319285
000004128 909CO $$ooai:repository.graduateinstitute.ch:4128$$pIHEID:Infonet$$pGLOBAL_SET$$pIHEID:Infonet_CFD$$pIHEID:Infonet_CTEI$$pIHEID:Infonet_CCDP$$pIHEID:Explore$$pIHEID:Infonet_IE
000004128 937__ $$aWP-2011-039
000004128 980__ $$aWP
000004128 980__ $$aINFONET