The impact of exchange rate volatility on economic growth and international trade

This paper summarizes several research works which deal with the different effects that volatility of exchanges rates has on economy. Among those effects, most studied have been international trade and economic growth. Over last five decades, there a debate at theoretical level views empirical whether gains from flexibility got under flexible exchange outweigh losses increased uncertainty often prevails in such environment rates. In particular, impact rate volatility, both growth, discussed. attempts to summarize some main results these debates, concerning, evidence thus collected.