This paper surveys the theoretical and empirical literature on the effects of the real exchange rate (RER) on international trade, economic development and growth. We summarize the main conceptual issues, discuss the relevance of the RER as an instrument of development policy, provide an...

Introduction to South-South relations -- South-South relations in their historical context -- Theoretical frameworks and emerging trends -- Empirical analysis of the structure of trade and finance -- Stopping a second great divergence: a new framework for South-South relations -- Concluding thoughts

This paper surveys the theoretical and empirical literature on the effects of the real exchange rate (RER) on international trade, economic development and growth. We summarize the main conceptual issues, discuss the relevance of the RER as an instrument of development policy, provide an...