The Effects of Currency Crises on the Long-Run Growth

HAKAN YILMAZKUDAY, VANDERBILT UNIVERSITY

Abstract

We attempt to analyze the effects of the currency crises on the long-run growth by using a cross-sectional country data set. After controlling for the post-crisis period, as opposed to the existing literature, we find that the effects of the currency crises on the long-run growth are strictly negative and significant. We also find that the negative effects of the currency crises on the long-run growth increase as the number of the currency crises increases.