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RESEARCH PRODUCT
Growth, inflation and the exchange rate regime
Malte KrügerIgnacio HernandoJavier AndrésJavier Andréssubject
InflationEconomics and EconometricsExchange ratemedia_common.quotation_subjectKeynesian economicsEconomicsMonetary economicsExchange-rate regimeReal interest rateFinancemedia_commondescription
Abstract According to the Balassa-Samuelson effect, growth and inflation are positively correlated in economies with pegged currencies. This paper shows that the costs of inflation on long-term growth are underestimated in samples that include countries and periods with fixed exchange rate regimes.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1996-10-01 | Economics Letters |