WHAT IS THE EFFECT OF U.S.-LED SANCTIONS ON A TARGET NATION'S FOREIGN CURRENCY EXCHANGE RATE?
Creator
Smith, Matthew U.
Advisor
Fleming, Matthew
Abstract
This study seeks to assess the relationship between United States-led sanctions and the foreign exchange rate (vis-à-vis the U.S. dollar) of targeted nations. Recent research has examined various impacts that sanctions have on a target nation, suggesting that sanctions often function as intended, reducing U.S. investment or bilateral trade. But these studies also suggest that unintended consequences can occur: U.S. investment is often replaced with other foreign investment, target nation trade with all partners tends to decrease, and target nations adapt to sanctions. This study explores whether U.S. sanctions affect a more wide-reaching economic indicator, the foreign exchange rate. It finds that certain types of sanctions are associated with modestly statistically significant changes in a targeted nation's long run nominal exchange rate when measured year-on-year and when using a volatility measure for exchange rates.
Description
M.P.P.
Permanent Link
http://hdl.handle.net/10822/558624Date Published
2014Subject
Type
Publisher
Georgetown University
Extent
36 leaves
Metadata
Show full item recordRelated items
Showing items related by title, author, creator and subject.
-
What Effect Does the Size of the State-Owned Sector Have on the Local Unemployment Rate in China
Xiong, Qiaozhi (Georgetown University, 2021)The huge state-owned economy is a well-known feature of the Chinese economy. While the China Communist party views state-owned enterprises (SOEs) as an essential part of the Chinese economy, many observers are skeptical ...