IMF research finds exchange rate variations affect exports
A working paper released by the International Monetary Fund (IMF) has concluded there is significant spillover effect on neighbouring economies from exchange rate appreciation.
The paper's authors, Aditya Mattoo, Prachi Mishra and Arvind Subramanian, use the renminbi as a case study, and assess the impacts of exchange rate changes on exports of competitor countries in third markets.
The report concludes that there is a considerable ‘spillover effect' with a 10% appreciation in the renminbi's
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