IDEAS home Printed from https://ideas.repec.org/p/bep/itfapp/1129.html
   My bibliography  Save this paper

Capital Flow Paradox, Speculation And External Adjustment In Emerging Market Economies

Author

Listed:
  • Massimiliano La Marca

    (United Nations Conference on Trade and Development)

Abstract

The paper provides some evidence on the current pattern of current account imbalances, real exchange rate and growth in emerging market economies and offers an interpretation to the fact that fast-growing economies tend to run small current account deficits or surpluses while preserving a non overvalued real exchange rate. The evidence that some speculative capital flows induced by domestic monetary policies may bring the exchange rate on a path inconsistent with an improvement of the external position provides a basis for a reconsideration of monetary and exchange rate policies at the national and international level.This paper was presented May 22, 2008, at the 18th International Conference of the International Trade and Finance Association meeting at Universidade Nova de Lisboa, Lisbon, Portugal.Keywords: foreign exchange rate, capital flows, growth, carry trade.JEL Classification: F31, F32, G15

Suggested Citation

  • Massimiliano La Marca, 2008. "Capital Flow Paradox, Speculation And External Adjustment In Emerging Market Economies," International Trade and Finance Association Conference Papers 1129, International Trade and Finance Association.
    • Handle: RePEc:bep:itfapp:1129
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    foreign exchange rate; capital flows; growth; carry trade.jel classification: f31; f32; g15;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bep:itfapp:1129. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: https://edirc.repec.org/data/itfaeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.