Hidden Bibliographic Details
| Other authors / contributors: | Hoffmaister, Alexander W.
Medeiros, Carlos I.
International Monetary Fund. Research Department.
International Monetary Fund. Western Hemisphere Department.
|
|---|
| ISBN: | 128355173X
9781283551731
|
|---|
| Notes: | Includes bibliographical references (pages 30-32).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
|
|---|
| Summary: | The potentially adverse effect of large capital inflows on domestic inflation and the real exchange rate (as well as, ultimately, the current account) has been one of the main concern of policymakers in developing countries and transition economies in recent years. As argued in a number of recent studies, the composition of capital flows, the degree of price stickiness and the degree of nominal exchange rate flexibility have been important factors in determining the effect of capital inflows on domestic macroeconomic outcomes. In countries where capital inflows have taken the form of portfolio investment (as opposed to foreign direct investment), they have often been associated with an increase in consumption rather than investment. In turn, the increase in consumption has often taken the form of a large increase in expenditure on nontradable goods, thereby leading to a real appreciation. In countries where a fixed (or predetermined) exchange rate has been used as a nominal anchor to reduce inflation (as was the case in Argentina, for instance), inertial factors have led to upward pressure on prices of nontraded goods and have led to a real appreciation. 2.
|
|---|
| Other form: | Print version: Agénor, Pierre-Richard. Cyclical fluctuations in Brazil's real exchange rate. [Washington, D.C.] : International Monetary Fund, Research and Western Hemisphere Departments, ©1997
|
|---|
