Exchange rate flexibility, volatility and the patterns of domestic and foreign direct investment /

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Bibliographic Details
Author / Creator:	Aizenman, Joshua, author.
Imprint:	[Washington, D.C.?] : International Monetary Fund, Research Department, [1992]
Description:	1 online resource (iii, 21 pages) : illustrations.
Language:	English
Series:	IMF working paper ; WP/92/20 IMF working paper ; WP/92/20.
Subject:	Foreign exchange rates -- Econometric models. Investments, Foreign -- Econometric models. Investments. Investments Investments. Foreign exchange rates -- Econometric models. Investments, Foreign -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12497536

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. Research Department, issuing body.
ISBN:	1455222097 9781455222094
Notes:	Includes bibliographical references (pages 20-21). Restrictions unspecified Electronic reproduction. [S.l.] : 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:	Annotation This paper investigates the factors determining the impact of exchange rate regimes on the behavior of domestic investment and foreign direct investment (FDI). Producers may diversify internationally in order to increase the flexibility of production. We characterize the possible equilibria in a macro model that allows for the presence of a short-run Phillips curve. It is shown that a fixed exchange rate regime is more conducive to FDI relative to a flexible exchange rate, and this conclusion applies for both real and nominal shocks. If the dominant shocks are nominal (real) we will observe a negative (a positive) correlation between exchange rate volatility and the level of investment.
Other form:	Print version: Aizenman, Joshua. Exchange rate flexibility, volatility and the patterns of domestic and foreign direct investment. [Washington, D.C.?] : International Monetary Fund, [1992]

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