Large Depreciations: Recent Experience in Historical Perspective

18 Pages Posted: 18 May 2016

See all articles by Jose de Gregorio

Jose de Gregorio

Central Bank of Chile; Universidad de Chile; National Bureau of Economic Research (NBER)

Date Written: May 17, 2016


Data for a large sample of countries dating back to the early 1970s reveal that the large depreciations against the dollar that are occurring in many countries are not unprecedented in magnitude or duration. The pass-through to inflation from exchange rate depreciation has been slightly more muted than in previous occasions, but it is not out of line with experience since the mid-1990s. The current account adjustment has been more limited than in the past, possibly suggesting that the period of weak currencies may be prolonged.

Keywords: Current Account Adjustment, Depreciation, Exchange Rate Pass-Through, Inflation

JEL Classification: E31, F31, F32, F41

Suggested Citation

de Gregorio, Jose, Large Depreciations: Recent Experience in Historical Perspective (May 17, 2016). Peterson Institute for International Economics Working Paper No. 16-8, Available at SSRN: or

Jose De Gregorio (Contact Author)

Central Bank of Chile ( email )

Agustinas 1180

Universidad de Chile ( email )

Ministry of Finance Teatinos l20 - Piso l2

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics