Essec\Faculty\Model\Contribution {#2233
#_index: "academ_contributions"
#_id: "16186"
#_source: array:26 [
"id" => "16186"
"slug" => "16186-the-dollar-squeeze-and-economic-growth"
"yearMonth" => "2026-03"
"year" => "2026"
"title" => "The dollar squeeze and economic growth"
"description" => "LIM, J. et LONG, X. (2026). The dollar squeeze and economic growth. <i>Journal of Macroeconomics</i>, 87, pp. 103740."
"authors" => array:2 [
0 => array:3 [
"name" => "LIM Jamus"
"bid" => "B00741035"
"slug" => "lim-jamus"
]
1 => array:1 [
"name" => "Long Xin"
]
]
"ouvrage" => ""
"keywords" => array:6 [
0 => "CIP deviations"
1 => "Cross-currency basis"
2 => "Dollar squeeze"
3 => "Output growth"
4 => "Panel VAR"
5 => "IV local projections"
]
"updatedAt" => "2026-02-04 09:52:38"
"publicationUrl" => "https://doi.org/10.1016/j.jmacro.2026.103740"
"publicationInfo" => array:3 [
"pages" => "103740"
"volume" => "87"
"number" => ""
]
"type" => array:2 [
"fr" => "Articles"
"en" => "Journal articles"
]
"support_type" => array:2 [
"fr" => "Revue scientifique"
"en" => "Scientific journal"
]
"countries" => array:2 [
"fr" => null
"en" => null
]
"abstract" => array:2 [
"fr" => "We study how deviations from covered interest parity — captured by the cross-currency basis (CCB) — affect output growth. Using quarterly data for advanced economies (AEs) and emerging markets (EMs) in panel VAR and IV-local-projections models, we find that positive CCB shocks reduce output, implying that easier dollar funding conditions can be contractionary. While dollar liquidity still supports growth during acute stress episodes in AEs, it has the opposite effect in normal times. In AEs, exchange-rate appreciation compensates holders of local-currency assets, eroding export competitiveness and lowering growth. In EMs, easier dollar access encourages shifts into local-currency assets, crowding out domestic liquidity and dampening activity."
"en" => "We study how deviations from covered interest parity — captured by the cross-currency basis (CCB) — affect output growth. Using quarterly data for advanced economies (AEs) and emerging markets (EMs) in panel VAR and IV-local-projections models, we find that positive CCB shocks reduce output, implying that easier dollar funding conditions can be contractionary. While dollar liquidity still supports growth during acute stress episodes in AEs, it has the opposite effect in normal times. In AEs, exchange-rate appreciation compensates holders of local-currency assets, eroding export competitiveness and lowering growth. In EMs, easier dollar access encourages shifts into local-currency assets, crowding out domestic liquidity and dampening activity."
]
"authors_fields" => array:2 [
"fr" => "Economie"
"en" => "Economics"
]
"indexedAt" => "2026-02-09T20:21:43.000Z"
"docTitle" => "The dollar squeeze and economic growth"
"docSurtitle" => "Articles"
"authorNames" => "<a href="/cv/lim-jamus">LIM Jamus</a>, Long Xin"
"docDescription" => "<span class="document-property-authors">LIM Jamus, Long Xin</span><br><span class="document-property-authors_fields">Economie</span> | <span class="document-property-year">2026</span>"
"keywordList" => "<a href="#">CIP deviations</a>, <a href="#">Cross-currency basis</a>, <a href="#">Dollar squeeze</a>, <a href="#">Output growth</a>, <a href="#">Panel VAR</a>, <a href="#">IV local projections</a>"
"docPreview" => "<b>The dollar squeeze and economic growth</b><br><span>2026-03 | Articles </span>"
"docType" => "research"
"publicationLink" => "<a href="https://doi.org/10.1016/j.jmacro.2026.103740" target="_blank">The dollar squeeze and economic growth</a>"
]
+lang: "fr"
+"_score": 8.567963
+"_ignored": array:2 [
0 => "abstract.en.keyword"
1 => "abstract.fr.keyword"
]
+"parent": null
}
