In this paper, we test whether weakening the domestic currency can help boost economic growth. To estimate this policy-relevant but yet complex link, we apply a new mediation analysis to isolate the long-term growth effects of currency undervaluation induced by active exchange rate management and capital control policies. Using a dataset of 182 countries in the post-Bretton-Woods period, we find that changes in undervaluation driven by exchange rate management and capital control policies have no significant impact on long-term growth. In addition, the direct growth effects of these policies are typically negative and offset the small positive impact gained indirectly through increased currency undervaluation.

中文翻译：

---

更便宜的货币和长期增长：汇率管理和资本管制的影响

在本文中，我们测试削弱本国货币是否有助于促进经济增长。为了估计这个与政策相关但又复杂的联系，我们应用了一种新的中介分析来隔离由积极的汇率管理和资本控制政策引起的货币低估的长期增长影响。使用后布雷顿森林体系时期 182 个国家的数据集，我们发现汇率管理和资本管制政策驱动的低估变化对长期增长没有显着影响。此外，这些政策的直接增长效应通常是负面的，抵消了通过货币低估加剧间接获得的微小正面影响。