The Real and Nominal Effects of Large Devaluations in Ukraine
Journal: Argumenta Oeconomica Cracoviensia
Year: 2016

Using monthly data for the 2000–14 period, this paper discusses the macroeconomic effects of large devaluations in Ukraine. Employing a time-varying parameter framework, the author shows that a nominal devaluation in “normal” times is associated with an increase in exports and a decrease in imports, an acceleration in consumption price inflation, and a contraction in industrial output (since 2014). However, a currency collapse is likely to be inflationary and contractionary in respect of exports