000			01117pab a2200181 454500
008			180718b2003 xxu||||| |||| 00| 0 eng d
100			_aGoldfajn, Ilan
245			_aDoes monetary policy stabilize the exchange rate following a currency crisis?
260			_c2003
300			_ap.90-114.
520			_aThis paper provides evidence on the relationship between monetary policy and the exchange rate in the aftermath of currency crises. It analzes a large dataset of currency crises in 80 countries for the period 1980-98. The main question addressed is whether monetary policy can increase the probability of reversing a postcrisis undervaluation through nominal appreciation rather than higher inflation. We find that tight monetary policy facilitates the reversal of currency undervaluation through nominal appreciation. When the economy also faces a banking crisis, the results are not robust and depend on the specification. - Reproduced.
650			_aEconomic recession
650			_aExchange rates
650			_aMonetary policy
700			_aGupta, Poonam
773			_aIMF Staff Papers
909			_a56435
999			_c56435 _d56435