Exchange rate fluctuations and macroeconomic performance Evidence from four fast-growing emerging economies

YILDIRIM Z., İVRENDİ M.

JOURNAL OF ECONOMIC STUDIES, cilt.43, sa.5, ss.678-698, 2016 (ESCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 43 Sayı: 5
  • Basım Tarihi: 2016
  • Doi Numarası: 10.1108/jes-01-2015-0010
  • Dergi Adı: JOURNAL OF ECONOMIC STUDIES
  • Derginin Tarandığı İndeksler: Emerging Sources Citation Index (ESCI), Scopus
  • Sayfa Sayıları: ss.678-698
  • Anahtar Kelimeler: Monetary policy, Exchange rate fluctuation, Open economy macroeconomics, Sign restriction, SIGN RESTRICTION APPROACH, CURRENCY DEVALUATION, DEVELOPING-COUNTRIES, MONETARY-POLICY, DEVELOPED-COUNTRIES, J-CURVE, OUTPUT, CONTRACTIONARY, TURKEY, BALANCE
  • Anadolu Üniversitesi Adresli: Evet

Özet

Purpose - Recent turbulence in global financial markets implies that emerging economies are likely to soon enter a new era with greater pressure for currency depreciation and capital outflows. This will likely bring challenges, including macroeconomic instability and inflationary pressures due to potential rapid depreciation. In this context, certain key questions about emerging economies have become focal points of discussion in political and academic spheres: what are the effects of exchange rate depreciation on economic activity? Does exchange rate depreciation create inflationary pressure? Finding answers to these questions is critical for policymakers and financial market participants. As such, the purpose of this paper is to shed light on these questions and thus provides guidance on mitigating the negative impacts of shocks in four fast-growing emerging economies.