<p>file:///C:/Users/ACER/Downloads/1__Papper_exchange%20rate-gdp%20growth%20(15).pdf</p>

<p>The real exchange rate of euro and Greek economic growth
Gregory T. Papanikos - So i got the information from this source</p>

CC BY-SA 4.0
2019-07-06T23:01:56.673Z
That is a comment and the link is to your download folder, which we cannot see
Henry
CC BY-SA 4.0
2019-07-09T08:27:23.320Z
Instead of posting an answer, consider editing your question to clarify it.
Art
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2019-07-06T21:39:39.043Z
2019-07-06T21:39:39.043Z
Josh
<p>One way to link both is the J curve reaction of a given country's trade balance, which directly affects GDP, towards fluctuations in the domestic currency exchange rate. </p>

CC BY-SA 4.0
2019-07-09T08:30:09.540Z
This answer is exactly like the one appears here, in 2017: https://www.researchgate.net/post/What_is_the_Relationship_between_GDP_and_Exchange_Rate
Art
CC BY-SA 4.0
2019-07-08T08:03:33.390Z
2019-07-08T08:03:33.390Z
Pinkbear
<p>When the domestic real gdp per capita increases then it has a negative effect on domestic currency (depreciation)? Why?</p>

<p>Source: <a href="https://doi.org/10.1016/j.jeca.2015.04.002" rel="nofollow noreferrer">The real exchange rate of euro and Greek economic growth</a>, Gregory T. Papanikos, The Journal of Economic AsymmetriesVolume 12, Issue 2, November 2015, Pages 100-109.</p>

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2019-07-06T20:17:20.563Z
where does it say so? Can you please post the source?
london
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2019-07-06T23:02:27.137Z
The article seems to be paywalled at https://www.sciencedirect.com/science/article/pii/S1703494915000109
Henry
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2019-07-06T23:05:57.453Z
The article's abstract seems to say the opposite, that an excessively high real exchange rate damages GDP.  A major cause is that it makes domestic production uncompetitive domestically (imports will be cheaper) and internationally (exports will be too expensive).  Why go on holiday to Greece when Turkey gives you similar beaches and sun for a lower price?
Henry
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2019-07-07T01:27:59.850Z
What you said is about the effect of reer on Gdp, but my question is related about the effect of gdp rate on reer. So, in my opinion as gdp increases, the exchange rate appreciates that also decreases the exports which means the depreciation of currency. So higher gdp can lead to depreciation of currency?
Josh
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2019-07-07T02:39:01.007Z
I find a strong and robust impact of the Balassa–Samuelson effect. When Greek per capita income rises by 10%, the real
exchange rate falls by 4.8%.  This is from the source
Josh
CC BY-SA 4.0
2019-07-09T08:28:25.430Z
I haven't been able to look at the paper, but an evidence for it in one country can't necessarily be generalized.
Art
<macroeconomics>
How does real gdp affect the domestic currency?
Josh
# How does real gdp affect the domestic currency?

(Asked by: username_0 on 2019-07-06)

When the domestic real gdp per capita increases then it has a negative effect on domestic currency (depreciation)? Why?

Source: [The real exchange rate of euro and Greek economic growth](https://doi.org/10.1016/j.jeca.2015.04.002), Gregory T. Papanikos, The Journal of Economic AsymmetriesVolume 12, Issue 2, November 2015, Pages 100-109.

**Tags:** macroeconomics

> **Comments:**
> **username_1**: where does it say so? Can you please post the source?  
> **username_2**: The article seems to be paywalled at https://www.sciencedirect.com/science/article/pii/S1703494915000109  
> **username_2**: The article's abstract seems to say the opposite, that an excessively high real exchange rate damages GDP.  A major cause is that it makes domestic production uncompetitive domestically (imports will be cheaper) and internationally (exports will be too expensive).  Why go on holiday to Greece when Turkey gives you similar beaches and sun for a lower price?  
> **username_0**: What you said is about the effect of reer on Gdp, but my question is related about the effect of gdp rate on reer. So, in my opinion as gdp increases, the exchange rate appreciates that also decreases the exports which means the depreciation of currency. So higher gdp can lead to depreciation of currency?  
> **username_0**: I find a strong and robust impact of the Balassa–Samuelson effect. When Greek per capita income rises by 10%, the real exchange rate falls by 4.8%.  This is from the source  
> **username_3**: I haven't been able to look at the paper, but an evidence for it in one country can't necessarily be generalized.  

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## 2 answers

### Answer by username_0 on 2019-07-06. Score: -1

file:///C:/Users/ACER/Downloads/1\_\_Papper\_exchange%20rate-gdp%20growth%20(15).pdf

The real exchange rate of euro and Greek economic growth
Gregory T. Papanikos - So i got the information from this source

> **Comments:**
> **username_2**: That is a comment and the link is to your download folder, which we cannot see  
> **username_3**: Instead of posting an answer, consider editing your question to clarify it.  

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### Answer by username_4 on 2019-07-08. Score: -2

One way to link both is the J curve reaction of a given country's trade balance, which directly affects GDP, towards fluctuations in the domestic currency exchange rate.

> **Comments:**
> **username_3**: This answer is exactly like the one appears here, in 2017: https://www.researchgate.net/post/What_is_the_Relationship_between_GDP_and_Exchange_Rate  

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