Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate write by Mr.Tidiane Kinda. This book was released on 2011-01-01. Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate available in PDF, EPUB and Kindle. 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.
Exchange Rates, Capital Flows and Policy
Exchange Rates, Capital Flows and Policy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Exchange Rates, Capital Flows and Policy write by Rebecca Driver. This book was released on 2013-04-15. Exchange Rates, Capital Flows and Policy available in PDF, EPUB and Kindle. Combining thorough scholarship with illuminating real-world examples, this edited collection provides insights on the causes and consequences of movements in both exchange rates and external assets and has a strong focus on the policy implications of operating in an open economy, particularly the choice of exchange rate and monetary policy, exchange rate intervention and policies on capital mobility.
Exchange Rate Flexibility and Credit during Capital Inflow Reversals
Exchange Rate Flexibility and Credit during Capital Inflow Reversals - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Exchange Rate Flexibility and Credit during Capital Inflow Reversals write by Mr.Nicolas E. Magud. This book was released on 2014-04-16. Exchange Rate Flexibility and Credit during Capital Inflow Reversals available in PDF, EPUB and Kindle. We document the behavior of macro and credit variables during episodes of capital inflows reversals in economies with different degrees of exchange rate flexibility. We find that exchange rate flexibility is associated with milder credit growth during the boom but, even though smaller than in more rigid regimes, it cannot shield the economy from a credit reversal. Furthermore, we observe what we dub as a recovery puzzle: credit growth in economies with more flexible exchange rate regimes remains tepid well after the capital flow reversal takes place. This results stress the complementarity of macro-prudential policies with the exchange rate regime. More flexible regimes could help smoothing the credit cycle through capital surchages and dynamic provisioning that build buffers to counteract the credit recovery puzzle. In contrast, more rigid exchange rate regimes would benefit the most from measures to contain excessive credit growth during booms, such as reserve requirements, loan-to-income ratios, and debt-to-income and debt-service-to-income limits.
Capital Inflows, Exchange Rate Flexibility, and Credit Booms
Capital Inflows, Exchange Rate Flexibility, and Credit Booms - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Inflows, Exchange Rate Flexibility, and Credit Booms write by Mr.Nicolas E. Magud. This book was released on 2012-02-01. Capital Inflows, Exchange Rate Flexibility, and Credit Booms available in PDF, EPUB and Kindle. The prospects of expansionary monetary policies in the advanced countries for the foreseeable future have renewed the debate over policy options to cope with large capital inflows that are, at least partly, driven by low interest rates in the financial centers. Historically, capital flow bonanzas have often fueled sharp credit expansions in advanced and emerging market economies alike. Focusing primarily on emerging markets, we analyze the impact of exchange rate flexibility on credit markets during periods of large capital inflows. We show that bank credit grows more rapidly and its composition tilts to foreign currency in economies with less flexible exchange rate regimes, and that these results are not explained entirely by the fact that the latter attract more capital inflows than economies with more flexible regimes. Our findings thus suggest countries with less flexible exchange rate regimes may stand to benefit the most from regulatory policies that reduce banks' incentives to tap external markets and to lend/borrow in foreign currency; these policies include marginal reserve requirements on foreign lending, currency-dependent liquidity requirements, and higher capital requirement and/or dynamic provisioning on foreign exchange loans.
Exchange Rate Flexibility and Credit during Capital Inflow Reversals
Exchange Rate Flexibility and Credit during Capital Inflow Reversals - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Exchange Rate Flexibility and Credit during Capital Inflow Reversals write by Mr.Nicolas E. Magud. This book was released on 2014-04-16. Exchange Rate Flexibility and Credit during Capital Inflow Reversals available in PDF, EPUB and Kindle. We document the behavior of macro and credit variables during episodes of capital inflows reversals in economies with different degrees of exchange rate flexibility. We find that exchange rate flexibility is associated with milder credit growth during the boom but, even though smaller than in more rigid regimes, it cannot shield the economy from a credit reversal. Furthermore, we observe what we dub as a recovery puzzle: credit growth in economies with more flexible exchange rate regimes remains tepid well after the capital flow reversal takes place. This results stress the complementarity of macro-prudential policies with the exchange rate regime. More flexible regimes could help smoothing the credit cycle through capital surchages and dynamic provisioning that build buffers to counteract the credit recovery puzzle. In contrast, more rigid exchange rate regimes would benefit the most from measures to contain excessive credit growth during booms, such as reserve requirements, loan-to-income ratios, and debt-to-income and debt-service-to-income limits.
