TY - BOOK ID - 85502985 TI - Exchange Rate Misalignment and Growth: A Myth? AU - Goncalves, Carlos. AU - Rodrigues, Mauro. PY - 2017 SN - 1484336054 148433602X PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Money and Monetary Policy KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Currency KW - Foreign exchange KW - Monetary economics KW - Real exchange rates KW - Currencies KW - Exchange rates KW - Money KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:85502985 AB - The impact of real exchange rate movements on GDP growth is a hotly debated issue both in policy and academic circles. In this paper, we provide evidence suggesting that the association between exchange rate misalignment and growth for a broad panel of countries is very weak. Controlling for country fixed effects, time effects and initial GDP, a more depreciated currency is associated with higher growth if one does not exclude outliers. However, this positive association always vanishes after controling for the savings rate. Importantly, this applies for both a large panel of countries and for the emerging economies subsample. ER -