Weaker currency boosts Australian growth, study shows
Study quantifies effect of Australian dollar depreciation on growth
An article in the Reserve Bank of Australia's latest quarterly bulletin discusses estimates of the effect of movements in the real exchange rate on economic activity and inflation in Australia.
In Exchange Rate Movements and Economic Activity, authors Marion Kohler, Josef Manalo and Dilhan Perera provide a range of estimates that suggest that a temporary 10% depreciation of the exchange rate increases the level of GDP temporarily by 0.25–0.5% over one to two years.
A permanent 10% real
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