Real Exchange (Haddad & Pancaro)

Can real exchange rate undervaluation boost exports and growth in developing countries? Yes, but not for long, by Mona Haddad and Cosimo Pancaro, published  by The World Bank. A policy of managed real undervaluation may have been an importante factor behind the sucess of East Asia’s export-led growth model. But current discussions demonstrate the controversy this kind of policy. They show that a real undervaluation works only for low-income countries, and only in the medium term. http://migre.me/14gh0