Series: IMF Working Papers
Author(s): Pascal Towbin , and Sebastian Weber
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 February 2011
Keywords: Exchange rate regime, balance sheet effect, pass-through, interacted panel VAR, external shock, exchange rate, currency debt, foreign currency debt, exchange rate regimes, Prices
A traditional argument in favor of flexible exchange rates is that they insulate output better from real shocks, because the exchange rate can adjust and stabilize demand for domestic goods through expenditure swit...