Hidden Bibliographic Details
| Other authors / contributors: | Ostry, Jonathan David, 1962- (IMFstaff), author.
Ghosh, Atish R., (IMFstaff), author.
Chamon, Marcos, (IMFstaff), author.
International Monetary Fund. Research Department, publisher.
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| ISBN: | 1513500805
9781513500805
9781513563107
1513563106
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| Notes: | "October 2015."
"Research Department."
Includes bibliographical references (pages 22-23).
Online resource; title from pdf title page (IMF Web site, viewed October 26, 2015).
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| Summary: | The workhorse open-economy macro model suggests that capital inflows are contractionary because they appreciate the currency and reduce net exports. Emerging market policy makers however believe that inflows lead to credit booms and rising output, and the evidence appears to go their way. To reconcile theory and reality, we extend the set of assets included in the Mundell-Fleming model to include both bonds and non-bonds. At a given policy rate, inflows may decrease the rate on non-bonds, reducing the cost of financial intermediation, potentially offsetting the contractionary impact of appreciation. We explore the implications theoretically and empirically, and fin support for the key predictions in the data.
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| Standard no.: | 10.5089/9781513500805.001
9781513563107
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