Foreign Exchange Constraint and Developing Economies

Reviews / Votes

'Most emerging and developing economies face a persistent foreign exchange gap. Holding foreign exchange reserves, even in large amounts, does not eradicate the gap that essentially produces persistently foreign exchange constrained economies. This book is a very helpful collection of chapters that elucidates the various manifestations for the foreign exchange constraint. It covers a wide number of important topics such as capital flows, foreign debt, exchange rate policy, the role of MNCs, financial crisis, and others. The collection will be very helpful to researchers and policymakers.' -- Tarron Khemraj, New College of Florida, US 'With the Ukraine crisis fueling inflation, rising interest rates and soaring debt-burdens, this timely volume brings together diverse approaches spanning theoretical models, empirical investigations, and policy analyses to address the challenges posed by volatile capital flows, deteriorating exchange-rates and the impact of COVID-19 to EMDCs in a world in flux.' -- Ramaa Vasudevan, Colorado State University, US 'The chapters in Professor Gevorkyan's edited book are a reminder that the external constraint is essentially a foreign exchange one, and that the post-Bretton Woods institutions are ill designed to help developing countries cope with the volatility of international capital flows. This is a timely and relevant collection of papers that should be required reading for all the experts in international financial issues.' -- Matias Vernengo, Bucknell University, Pennsylvania, US 'After more than 2 decades of work in developing countries, realizing the many ways conventional modern macroeconomics education misses the main challenges that are actually faced by their policymakers, I am delighted to see the relevant topics for growth and macroeconomic stability in developing economies make a comeback. Aleksandr Gevorkyan and the authors that joined him in this fine treatment of the issues need to be congratulated and encouraged to continue deepening this most-relevant research and policy analysis program.' -- Joao Farinha Fernandes, Asian Development Bank