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Oil Prices and Real Exchange Rate Movements in Oil-Exporting Countries: The Role of Institutions
| Content Provider | Semantic Scholar |
|---|---|
| Author | Rickne, Johanna |
| Copyright Year | 2009 |
| Abstract | Political and legal institutions affect the extent to which the real exchange rates of oil-exporting countries co-move with the oil price. In a simple theoretical model, strong institutions insulate real exchange rates from oil price volatility by generating a smooth pattern of fiscal spending over the price cycle. Empirical tests on a panel of 33 oil-exporting countries provide evidence that countries with high bureaucratic quality and strong and impartial legal systems have real exchange rates that co-move less with the oil price. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://www.ifn.se/Wfiles/wp/wp810.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |