Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate /

This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfo...

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Xehetasun bibliografikoak
Egile nagusia: Combes, Jean-Louis
Beste egile batzuk: Kinda, Tidiane, Plane, Patrick
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2011.
Saila:IMF Working Papers; Working Paper ; No. 2011/009
Sarrera elektronikoa:Full text available on IMF
Deskribapena
Gaia:This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.
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Deskribapen fisikoa:1 online resource (34 pages)
Formatua:Mode of access: Internet
ISSN:1018-5941
Sartu:Electronic access restricted to authorized BRAC University faculty, staff and students