Publication:
Real Exchange Rates, Saving, and Growth: Is There a Link?

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dc.contributor.authorMontiel, Peter J.
dc.contributor.authorServén, Luis
dc.date.accessioned2017-08-17T19:40:42Z
dc.date.available2017-08-17T19:40:42Z
dc.date.issued2009
dc.description.abstractThe view that policies directed at the real exchange rate can have an important effect on economic growth has been gaining adherents in recent years. Unlike the traditional 'misalignment' view that temporary departures of the real exchange rate from its equilibrium level harm growth by distorting a key relative price in the economy, the recent literature stresses the growth effects of the equilibrium real exchange rate itself, with the claim being that a depreciated equilibrium real exchange rate promotes economic growth. While there is no consensus on the precise channels through which this effect is generated, an increasingly common view in policy circles points to saving as the channel of transmission, with the claim that a depreciated real exchange rate raises the domestic saving rate which in turn stimulates growth by increasing the rate of capital accumulation. This paper offers a preliminary exploration of this claim. Drawing from standard analytical models, stylized facts on saving and real exchange rates, and existing empirical research on saving determinants, the paper assesses the link between the real exchange rate and saving. Overall, the conclusion is that saving is unlikely to provide the mechanism through which the real exchange rate affects growth.en
dc.identifierhttp://documents.worldbank.org/curated/en/894531468151502121/Real-exchange-rates-saving-and-growth-is-there-a-link
dc.identifier.doi10.1596/27929
dc.identifier.urihttps://hdl.handle.net/10986/27929
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesCommission on Growth and Development Working Paper;No. 46
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectAGGREGATE DEMAND
dc.subjectBALANCE OF PAYMENTS
dc.subjectBANK POLICY
dc.subjectBONDS
dc.subjectBUDGET CONSTRAINT
dc.subjectCAPITA INCOME
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL MOBILITY
dc.subjectCAPITAL MOVEMENTS
dc.subjectCAPITAL STOCK
dc.subjectCENTRAL BANK
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCONSUMER CREDIT
dc.subjectCONSUMPTION EXPENDITURE
dc.subjectCONSUMPTION EXPENDITURES
dc.subjectCONSUMPTION LEVELS
dc.subjectCONSUMPTION SMOOTHING
dc.subjectCORPORATE PROFITS
dc.subjectCORPORATE SAVING
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT SURPLUSES
dc.subjectDEMAND FOR MONEY
dc.subjectDEMOGRAPHIC
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDEVELOPMENT POLICY
dc.subjectDEVELOPMENT STRATEGY
dc.subjectDISEQUILIBRIUM
dc.subjectDISPOSABLE INCOME
dc.subjectDIVIDENDS
dc.subjectDOLLAR PRICE
dc.subjectDOLLAR PRICES
dc.subjectDOMESTIC CAPITAL
dc.subjectDOMESTIC COMPETITION
dc.subjectDOMESTIC ECONOMY
dc.subjectDOMESTIC INFLATION
dc.subjectDOMESTIC MARKETS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC REFORM
dc.subjectECONOMIC RESEARCH
dc.subjectECONOMIC REVIEW
dc.subjectEMPIRICAL EVIDENCE
dc.subjectEMPIRICAL STUDIES
dc.subjectENDOGENOUS VARIABLES
dc.subjectENVIRONMENTAL BENEFITS
dc.subjectEQUILIBRIUM
dc.subjectEQUILIBRIUM VALUE
dc.subjectEQUILIBRIUM VALUES
dc.subjectEXCESS DEMAND
dc.subjectEXCESS SUPPLY
dc.subjectEXCHANGE RATE DEPRECIATION
dc.subjectEXCHANGE RATE POLICIES
dc.subjectEXCHANGE RATE POLICY
dc.subjectEXCHANGE RATE REGIMES
dc.subjectEXCHANGE RATE SYSTEM
dc.subjectEXOGENOUS SHOCKS
dc.subjectEXOGENOUS VARIABLES
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL REFORM
dc.subjectFINANCIAL SAVING
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SECTOR STABILITY
dc.subjectFINANCIAL STRUCTURE
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFINANCIALLY OPEN ECONOMIES
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFIXED EXCHANGE RATE
dc.subjectFOREIGN FINANCING
dc.subjectFORMAL FINANCIAL SECTOR
dc.subjectFUTURE GROWTH
dc.subjectGDP
dc.subjectGDP DEFLATOR
dc.subjectGDP PER CAPITA
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBALIZATION
dc.subjectGNP
dc.subjectGROWTH RATE
dc.subjectGROWTH RATE OF INCOME
dc.subjectGROWTH RATES
dc.subjectHIGH INFLATION
dc.subjectHOLDING
dc.subjectHOLDINGS
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SAVING
dc.subjectHOUSEHOLD SAVING RATE
dc.subjectINCOME DISTRIBUTION
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOMES
dc.subjectINDUSTRIAL COUNTRIES
dc.subjectINFLATION RATE
dc.subjectINSTRUMENT
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BORROWING
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL FLOWS
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL EXPERIENCE
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL INVESTMENT
dc.subjectINTERNATIONAL MONETARY FUND
dc.subjectINTERNATIONAL PORTFOLIO
dc.subjectINVESTMENT RATES
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLONG TERM
dc.subjectLOW-INCOME COUNTRIES
dc.subjectMACRO STABILITY
dc.subjectMACROECONOMIC ANALYSIS
dc.subjectMACROECONOMIC ENVIRONMENT
dc.subjectMACROECONOMIC IMPACT
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC MODELS
dc.subjectMACROECONOMIC PERFORMANCE
dc.subjectMACROECONOMIC POLICY
dc.subjectMACROECONOMICS
dc.subjectMARGINAL UTILITY
dc.subjectMONETARY FUND
dc.subjectNATIONAL SAVING
dc.subjectNATURAL RESOURCES
dc.subjectNOMINAL EXCHANGE RATE
dc.subjectNOMINAL INTEREST RATE
dc.subjectNPL
dc.subjectOLD AGE CRISIS
dc.subjectOPEN ECONOMIES
dc.subjectOPEN ECONOMY
dc.subjectOPPORTUNITY COST
dc.subjectOUTPUT
dc.subjectOVERVALUATION
dc.subjectPENSION
dc.subjectPER CAPITA INCOME
dc.subjectPERMANENT INCOME
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL ECONOMY OF REFORM
dc.subjectPORTFOLIO DIVERSIFICATION
dc.subjectPOSITIVE EFFECTS
dc.subjectPOSTAL SAVING
dc.subjectPOVERTY REDUCTION
dc.subjectPRIVATE CONSUMPTION
dc.subjectPRIVATE INFRASTRUCTURE
dc.subjectPRIVATE SAVING
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPROVIDENT FUND
dc.subjectPROVIDENT FUNDS
dc.subjectPUBLIC ECONOMICS
dc.subjectPUBLIC POLICY
dc.subjectPUBLIC SAVING
dc.subjectPUBLIC SECTOR
dc.subjectRAPID ECONOMIC GROWTH
dc.subjectRAPID GROWTH
dc.subjectRATE OF GROWTH
dc.subjectRATE OF INFLATION
dc.subjectRATE OF INVESTMENT
dc.subjectRATE TARGETING
dc.subjectREAL APPRECIATION
dc.subjectREAL EXCHANGE
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL EXCHANGE RATE VOLATILITY
dc.subjectREAL EXCHANGE RATES
dc.subjectREAL INCOME
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectREAL INTEREST RATES
dc.subjectREAL WAGES
dc.subjectRELATIVE PRICE
dc.subjectRESERVE
dc.subjectRESTRICTIONS ON ENTRY
dc.subjectRETURN
dc.subjectRISK PREMIUM
dc.subjectSAVING RATES
dc.subjectSAVINGS
dc.subjectSAVINGS RATES
dc.subjectSMALL SAVERS
dc.subjectSTABLE INFLATION
dc.subjectSUSTAINED GROWTH
dc.subjectTAX
dc.subjectTAX INCENTIVES
dc.subjectTRADE BALANCE
dc.subjectTRADING
dc.subjectTRANSACTION
dc.subjectTRANSACTION COSTS
dc.subjectTRANSACTIONS COSTS
dc.subjectUTILITY FUNCTION
dc.subjectWEALTH
dc.titleReal Exchange Rates, Saving, and Growthen
dc.title.subtitleIs There a Link?en
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2010-12-06
okr.date.doiregistration2025-04-15T11:37:22.171300Z
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/894531468151502121/Real-exchange-rates-saving-and-growth-is-there-a-link
okr.guid894531468151502121
okr.identifier.externaldocumentum000333038_20101207000948
okr.identifier.internaldocumentum13203725
okr.identifier.report57745
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/894531468151502121/pdf/577450NWP0Box353767B01PUBLIC10gcwp046web.pdfen
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicMacroeconomics and Economic Growth::Economic Investment & Savings
okr.unitDECRG: Macroeconomics & Growth (DECMG)
relation.isAuthorOfPublication2c4139d2-7458-5296-9aea-6d3db3e1ae1e
relation.isAuthorOfPublication.latestForDiscovery2c4139d2-7458-5296-9aea-6d3db3e1ae1e
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