Can Currency Real Depreciation Drive Growth?

Key Points

• The study aims to explore the relationship between currency real depreciation and economic growth in various economies.
• Examine historical data on currency real exchange rates and economic growth trends.
• Analyze case studies of African economies and East Asian growth strategies.
• Evaluate the impact of structural adjustment and financial crises on these dynamics.
• Competitive currencies correlated with increased economic growth in East Asia during the 1980s.
• The role of real exchange rate policies remains debated post-2008 financial crisis.
• Findings suggest that currency depreciation can enhance export profitability, potentially driving economic growth.