The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

Exchange Rate Fluctuations and Output in Oil-Producing Countries: The Case of Iran

Exchange Rate Fluctuations and Output in Oil-Producing Countries: The Case of Iran by Magda E. Kandil
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
Conventional wisdom states that currency depreciation in oil-producing countries are contractionary because demand effects, limited by the prevalence of oil exports priced in dollars, are more than offset by adverse supply effects. Iran, however, has experienced a rapid increase in non-oil exports in the last decade. Against this background, the paper tests whether the conventional wisdom still applies to Iran and concludes that the emergence of the non-oil export sector has made currency depreciation expansionary. The expansionary effect is particularly evident with respect to anticipated persistent depreciation in the long-run. Notwithstanding the varying effects of exchange rate fluctuations on the demand and supply sides of the economy, managing a flexible exchange rate gradually over time towards achieving stability in the real effective exchange rate may strike the necessary balance.
International Monetary Fund; May 2007
32 pages; ISBN 9781452714806
Read online, or download in secure EPUB or secure PDF format
Title: Exchange Rate Fluctuations and Output in Oil-Producing Countries: The Case of Iran
Author: Magda E. Kandil; Mohsen Bahmani-Oskooee