Published January 1, 2015 | Version v1
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Real exchange rate volatility and business cycles in emerging market economies

  • 1. Sabanci Univ, Fac Arts & Social Sci, TR-34956 Istanbul, Turkey

Description

This paper analyzes how real exchange rate volatility affects business cycles through the cost of foreign currency borrowing. The results show that output volatility increases by up to 22% as the share foreign-denominated debt increases from 0 to 100%. (C) 2015 Elsevier B.V. All rights reserved.

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