| Weaker exchange rates have not lost their power to spur higher exports, according to analysis by the International Monetary Fund. The findings run counter to recent research from the World Bank, which found that currency devaluations are now only half as effective at boosting exports as they were in the mid-1990s.
They are also at odds with analysis by the FT, focused purely on emerging markets, which found that since 2013 currency weakness has not helped boost exports at all, although it has led to a drop in imports. As such, the IMF’s analysis suggests that one of the key inbuilt stabilisers of the global economic system remains intact...............................................Full Article: Source
|