Sanctions and the Exchange Rate.
Trade wars and financial sanctions are again becoming an increasingly common part of the international economic landscape, and the dynamics of the exchange rate are often used in real time to evaluate the effectiveness of sanctions and policy responses. We show that sanctions limiting a country's ex...
| Publicado en: | Review of Economic Studies Vol. 93; no. 4; pp. 2680 - 2715 |
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| Autores principales: | , |
| Formato: | Artículo |
| Publicado: |
Oxford University Press / USA
Jul2026
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=195161452&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 195161452 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00346527 REM jtl: Review of Economic Studies issn: 00346527 maglogo: N pubinfo: dt: Jul2026 vid: 93 iid: 4 pid: 622 pub: Oxford University Press / USA artinfo: ui: 195161452 10.1093/restud/rdaf085 ppf: 2680 ppct: 35 formats: tig: atl: Sanctions and the Exchange Rate. aug: au: Itskhoki, Oleg Mukhin, Dmitry affil: Harvard University, USA London School of Economics, UK su: Ukraine Russia Economic policy Economic sanctions Foreign exchange rates International sanctions Export controls International trade disputes Devaluation of currency Import quotas sug: subj: Economic policy Economic sanctions Ukraine Russia Foreign exchange rates International sanctions Export controls International trade disputes Devaluation of currency Import quotas keyword: copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Financial repression Financial sanctions FX market inLanguage:en publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf085 Trade sanctions copyrightHolder:Review of Economic Studies Ltd copyrightYear:2026 Financial repression Financial sanctions FX market inLanguage:en publisher:Oxford University Press sameAs:https://dx.doi.org/10.1093/restud/rdaf085 Trade sanctions ab: Trade wars and financial sanctions are again becoming an increasingly common part of the international economic landscape, and the dynamics of the exchange rate are often used in real time to evaluate the effectiveness of sanctions and policy responses. We show that sanctions limiting a country's exports or freezing its assets depreciate the exchange rate, while sanctions limiting imports appreciate it, even when both types of policies have exactly the same effect on real allocations, including household welfare and government fiscal revenues. Beyond the direct effect from sanctions, increased precautionary savings in foreign currency also depreciate the exchange rate when they are not offset by the sale of official reserves or financial repression of foreign-currency savings. We show that the dynamics of the ruble exchange rate following Russia's invasion of Ukraine in February 2022 are quantitatively consistent with the combined effects of these forces calibrated to the observed sanctions and government policies. We evaluate the associated welfare, fiscal and inflationary consequences for both Russia and the coalition of Western countries. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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