Weaker currency boosts Australian growth, study shows

Study quantifies effect of Australian dollar depreciation on growth


An article in the Reserve Bank of Australia's latest quarterly bulletin discusses estimates of the effect of movements in the real exchange rate on economic activity and inflation in Australia.

In Exchange Rate Movements and Economic Activity, authors Marion Kohler, Josef Manalo and Dilhan Perera provide a range of estimates that suggest that a temporary 10% depreciation of the exchange rate increases the level of GDP temporarily by 0.25–0.5% over one to two years.

A permanent 10% real

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account