2007SSRN Electronic JournalOpen access

The Effects of Currency Crises on the Long-Run Growth

Hakan Yilmazkuday

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Abstract

We attempt to analyze the effects of the currency crises on the long-run growth by using a cross-sectional country data set. After controlling for the post-crisis period, we find that the effects of the currency crises on the long-run growth are strictly negative and significant. We also find that the negative effects of the currency crises on the long-run growth increase as the number of the currency crises increases.

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What this paper is about

We attempt to analyze the effects of the currency crises on the long-run growth by using a cross-sectional country data set. After controlling for the post-crisis period, we find that the effects of the currency crises on the long-run growth are strictly negative and significant. We also find that the negative effects of the currency crises on the long-run growth increase as the number of the currency crises increases.

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Available abstract

We attempt to analyze the effects of the currency crises on the long-run growth by using a cross-sectional country data set. After controlling for the post-crisis period, we find that the effects of the currency crises on the long-run growth are strictly negative and significant. We also find that the negative effects of the currency crises on the long-run growth increase as the number of the currency crises increases.

Key concepts: Currency, Monetary economics, Currency crisis, Economics, Short run, Foreign exchange risk

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