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Journal Articles Annals of Economics and Statistics Year : 2013

Real exchange rate and productivity in an OLG model

Abstract

This article develops an overlapping generations model to show how demography and savings affect the relationship between real exchange rate (RER) and productivity. In high-saving (low-saving) countries and/or low-population-growth-rate countries, a rise in productivity leads to a real depreciation (appreciation) whereas the RER may appreciate or depreciate in high-population-growth-rate. Using panel data, we conclude that a rise in productivity generally causes a real exchange rate appreciation in debtor countries, a depreciation in creditor countries, an appreciation in countries whose population growth rate is low.

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Dates and versions

hal-01499640 , version 1 (31-03-2017)

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Thi Hong Thinh Doan, Karine Gente. Real exchange rate and productivity in an OLG model. Annals of Economics and Statistics, 2013, 109-110, pp.259-280. ⟨10.2307/23646434⟩. ⟨hal-01499640⟩
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