note the requirements of development in dani
competitive exchange rate
protect traditional sectors
the study chinn sites
"while aggregate output is not strongly affected, export growth falls significantly after appreciation shocks. Import growth remains by and large unchanged resulting in the observed deterioration in external balances."
and
" As aggregate economic growth is much less affected, our results point to a positive domestic demand response following appreciation episodes. "
is appreciation
in that context
a zap to development ???
does the short run violate
dani's competitive currenct proviso
or is the zap to exports a re shift away from low employment high productivity sectors
toward low productivity high employment sectors
apparently not to growth
or to export competing domestic industry
no import rate flab-alanche
only export rate shrink
not on top of this yet
