Policy Responses to External Imbalances in Emerging Market Economies : Further Empirical Results /

A bivariate vector-autoregression (VAR) model is used to test causal relations between the current account and the capital account in four emerging market economies. The results show that high capital mobility could be a major cause of current account instability. Therefore, macroeconomic policy to...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Carranza, Luis
مؤلفون آخرون: Wong, Chorng-Huey
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1998.
سلاسل:IMF Working Papers; Working Paper ; No. 1998/103
الوصول للمادة أونلاين:Full text available on IMF
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100 1 |a Carranza, Luis. 
245 1 0 |a Policy Responses to External Imbalances in Emerging Market Economies :   |b Further Empirical Results /  |c Luis Carranza, Chorng-Huey Wong. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1998. 
300 |a 1 online resource (30 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a A bivariate vector-autoregression (VAR) model is used to test causal relations between the current account and the capital account in four emerging market economies. The results show that high capital mobility could be a major cause of current account instability. Therefore, macroeconomic policy to restore external balance must deal directly with capital inflows. The paper recommends making nominal exchange rate sufficiently flexible to avoid inconsistencies between short-run and long-run real exchange rates; complementing credit tightening by fiscal restraint to reduce interest rate differentials; and strengthening reforms and surveillance of the financial system to prevent banks from excessive risk taking. 
538 |a Mode of access: Internet 
700 1 |a Wong, Chorng-Huey. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1998/103 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1998/103/001.1998.issue-103-en.xml  |z IMF e-Library