Pedro Nicolaci da Costa — There’s a reason poor countries feel they've lost control of their economies

The increasing integration of global markets and economies, in addition to new technologies that help accelerate the transmission of financial shocks from one region to another, is making it trickier for so-called emerging countries to manage their banking systems.

A surge in dollar-denominated bonds in developing economies, and their dependence of the vagaries of the richest nations, leave policymakers in areas like Latin America, Africa and Asia in difficult, if not entirely untenable positions, according to the International Monetary Fund’s latest report on global financial stability. Currency markets are particularly vulnerable and volatile....

Business Insider
There’s a reason poor countries feel they've lost control of their economies
Pedro Nicolaci da Costa

vox.ue — Fighting ‘currency wars’ with blanks: The limited role of exchange rates in export competitiveness

In the ‘currency wars’ discussion, it is almost taken for granted that exchange rate depreciations will result in non-trivial export gains. Using evidence from countries in Europe and Asia, this column argues instead that factors unrelated to prices/exchange rates often play a predominant role in shaping trade developments. Moreover, these factors affect export outcomes in a very diversified manner across countries, in part because of the interplay of global value chains.

So much for that theory.

vox.ue
Fighting ‘currency wars’ with blanks: The limited role of exchange rates in export competitiveness
Filippo di Mauro, Konstantins Benkovskis, Sante De Pinto, Marco Grazioli