Berganza, Juan Carlos; García-Herrero, Alicia - Banco de España - 2004
This paper builds upon the empirical literature on the macroeconomic impact of real exchange rate depreciations for a … sample of 27 emerging economies. We find that real exchange rate depreciations tend to increase a country's risk premium … appreciations do not seem to reduce the risk premium. We also show that the main channels for the real exchange rate to affect …