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Kandil, 2004; Pierrer-Richard, 1991), others find expansionary effects of exchange rate depreciation on output (Adewuyi, 2005; Bahmani & Kandil, 2007). Pentti (1976) investigates the relationship between exchange rate and BOP in the short- and long-run period from the monetary policy approach. his findings show a significant departure from the
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Magda Kandil, International Monetary Fund, Washington, DC, USA. Tel: +1 202 623 4696; Fax: +1 202 589 4696; Email: Mkandil@IMF.org. The views expressed in this paper are those of the authors and should not be interpreted as those of the International Monetary Fund. The authors thank an anonymous referee for helpful comments.
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