Questioning the effect of the real exchange rate on growth: new evidence from Mexico

IF 1.8 3区经济学 Q2 ECONOMICS

Review of Keynesian Economics Pub Date : 2021-04-01 DOI:10.4337/ROKE.2021.02.05

Florencia Medici, Augustín Mario, Alejandro Fiorito

引用次数: 2

Abstract

This study provides new evidence showing that the real exchange rate (RER) does not play an important role in the growth of Mexican GDP. Economic growth is not an automatically predetermined result of relative price correction, and it is important to consider distinctive aspects of national institutional arrangements (fiscal and monetary, for example) for understanding theoretical causality of demand. The empirical results show public expenditure is an overlooked variable in regressions where the exchange rate affects product growth. After incorporating public expenditure, the RER impact on growth becomes insignificant. For its part, public expenditure has a positive and significant effect on GDP in the long term. The RER does not lead to greater GDP since exports are not stimulated through price.

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质疑实际汇率对经济增长的影响:来自墨西哥的新证据

本研究提供了新的证据，表明实际汇率(RER)在墨西哥GDP增长中没有发挥重要作用。经济增长不是相对价格调整自动预定的结果，重要的是要考虑国家制度安排的不同方面(例如财政和货币)，以理解需求的理论因果关系。实证结果表明，在汇率影响产品增长的回归中，公共支出是一个被忽视的变量。在纳入公共支出后，RER对增长的影响变得微不足道。就公共支出而言，从长期来看，它对GDP有积极而显著的影响。RER不会带来更高的GDP，因为价格不会刺激出口。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Review of Keynesian Economics ECONOMICS-

CiteScore

3.10

自引率

12.50%

发文量

期刊介绍： The Review of Keynesian Economics (ROKE) is dedicated to the promotion of research in Keynesian economics. Not only does that include Keynesian ideas about macroeconomic theory and policy, it also extends to microeconomic and meso-economic analysis and relevant empirical and historical research. The journal provides a forum for developing and disseminating Keynesian ideas, and intends to encourage critical exchange with other macroeconomic paradigms. The journal is dedicated to the development of Keynesian theory and policy. In our view, Keynesian theory should hold a similar place in economics to that held by the theory of evolution in biology. Many individual economists still work within the Keynesian paradigm, but intellectual success demands institutional support that can leverage those individual efforts. The journal offers such support by providing a forum for developing and sharing Keynesian ideas. Not only does that include ideas about macroeconomic theory and policy, it also extends to microeconomic and meso-economic analysis and relevant empirical and historical research. We see a bright future for the Keynesian approach to macroeconomics and invite the economics profession to join us by subscribing to the journal and submitting manuscripts.