Does the exchange rate regime influence the relationship between the output gap and the current account?
APPLIED ECONOMICS, pp. 1955-1960, 2007.
Estimates of the output gap are useful for identifying the sustainable level of noninflationary output growth in countries with a flexible exchange rate regime. For nations with a fixed exchange rate, however, domestic prices are inexorably linked to the prices of its main trading partners and are unlikely to bear little relation to the o...More
Full Text (Upload PDF)
PPT (Upload PPT)