Undervaluation, Financial Development, and Economic Growth
This paper analyzes the effect of undervaluation on economic growth in the presence of borrowing constraints. Based on a two-sector, small open-economy model, we show that undervaluation can promote economic growth by partly correcting distortions in financial markets through the channels of increas...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
The MIT Press
2017-03-01
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| Series: | Asian Development Review |
| Subjects: | |
| Online Access: | https://www.mitpressjournals.org/doi/pdf/10.1162/ADEV_a_00083 |