Comments by Iris Claus, on Exchange Rate Flexibility, Financial Market Openness, and Economic Growth

Abstract

February 01 2018 Comments by Iris Claus, on Exchange Rate Flexibility, Financial Market Openness, and Economic Growth Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2018 by the Asian Economic Panel and the Massachusetts Institute of Technology2018Massachusetts Institute of Technology Asian Economic Papers (2018) 17 (1): 163–165. https://doi.org/10.1162/asep_a_00596 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments by Iris Claus, on Exchange Rate Flexibility, Financial Market Openness, and Economic Growth. Asian Economic Papers 2018; 17 (1): 163–165. doi: https://doi.org/10.1162/asep_a_00596 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Iris Claus: Economic recovery following the 2008–09 global financial crisis has been slow. To accelerate economic growth, policy recommendations by G-20 countries have been to correct global imbalances by implementing structural reforms and more market-determined exchange rate systems. In their paper, Il Houng Lee and Kyunghun Kim take a different view. They argue that greater exchange rate flexibility by itself cannot resolve global imbalances and “policymakers should consider the long-term growth effect when formulating exchange rate policy as it could be a useful policy option for emerging markets with limited policy independence.” Lee and Kim first define which countries should be classified as emerging economies and then assess the usefulness of greater exchange rate flexibility as a policy tool to (i) reduce the probability of a currency crisis; and (ii) to support long-run economic growth. A currency crisis is defined as an annual depreciation against the U.S. dollar of... You do not currently have access to this content.