01820cas a2200241 a 4500 AALejournalIMF007873 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451859355 1018-5941 BD-DhAAL BD-DhAAL Kandil, Magda. The Asymmetric Effects of Exchange Rate Fluctuations : Theory and Evidence From Developing Countries / Magda Kandil. Washington, D.C. : International Monetary Fund, 2000. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper examines the asymmetric effects of exchange rate fluctuations on real output and price in developing countries. The theoretical model decomposes movements in the exchange rate into anticipated and unanticipated components. Unanticipated currency fluctuations determine aggregate demand through exports, imports, and the demand for domestic currency, and determine aggregate supply through the cost of imported intermediate goods. The evidence indicates that the supply channel leads to output contraction and price inflation in the face of unanticipated currency depreciation. In contrast, the reduction in net exports determines output contraction without reducing price inflation in the face of unanticipated currency appreciation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2000/184 Full text available on IMF http://elibrary.imf.org/view/journals/001/2000/184/001.2000.issue-184-en.xml IMF e-Library