TY  - RPRT
        AU  - Kuokštis, Vytautas
AU  - Asali, Muhammad
AU  - Spurga, Simonas Algirdas
        TI  - Exchange Rates and Economic Growth During the Global Business Cycle: The Role of Labor Market Institutions
        PY  - 2024/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17590
        UR  - https://www.iza.org/publications/dp17590
        AB  - The effect of exchange rate regimes on economic performance is one of the key questions in international economics, both academically and policy-wise. Based on the theory of Optimum Currency Areas (OCA), we examine how labor market regulations affect the relationship between exchange rate regimes and economic growth during global recessions and recoveries. Using a global panel dataset, we show that the negative influence of fixed exchange rate regimes during global shocks identified in earlier literature only manifests itself in countries with high labor market regulation. Conversely, fixers with less labor market regulation recover faster from global recessions than floaters.
        KW  - growth
KW  - labor market regulation
KW  - exchange rate regimes
KW  - global recessions
KW  - recovery
        ER  -