The Effect of Exchange Rate Fluctuations on the Liechtenstein Economy

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We exploit the suspension of the exchange rate floor versus the Euro in January 2015 in an event-study design to evaluate how the Liechtenstein economy reacts to exchange rate fluctuations. To quantify the effects we construct synthetic counterfactuals that give us an indication on how the Liechtenstein economy would have developed had the exchange rate floor been sustained.


Project start: 2019