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Real exchange rate and productivity in an OLG model

Abstract : This article develops an overlapping generations model to show how demography and savings affect the relationship between real exchange rate (RER) and productivity. In high-saving (low-saving) countries and/or low-population-growth-rate countries, a rise in productivity leads to a real depreciation (appreciation) whereas the RER may appreciate or depreciate in high-population-growth-rate. Using panel data, we conclude that a rise in productivity generally causes a real exchange rate appreciation in debtor countries, a depreciation in creditor countries, an appreciation in countries whose population growth rate is low.
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Submitted on : Friday, March 31, 2017 - 5:06:33 PM
Last modification on : Tuesday, August 2, 2022 - 2:02:01 PM




Thi Hong Thinh Doan, Karine Gente. Real exchange rate and productivity in an OLG model. Annals of Economics and Statistics, CNGP-INSEE, 2013, pp.259-280. ⟨10.2307/23646434⟩. ⟨hal-01499640⟩



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