Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls
AbstractThis paper addresses the issue of international payments in a stock-flow framework, by capturing the interaction between the current account balance and international assets portfolios of domestic and foreign investors. It is argued that the stability of such interaction may be affected by shifts in the preferences of investors, by the relative rate of return of different assets, andâ€”more in generalâ€”by institutional settings. The model is then used for policy analysis purposes to derive the conditions for the existence of dynamic equilibria, and if they can be attained, under the assumption of market-distorting policy choices.
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Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Finance Working Papers with number 23206.
Date of creation: Dec 2011
Date of revision:
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More information through EDIRC
exchange rate; current account balance; Applied General Equilibrium model; capital controls; dynamic equilibria;
Other versions of this item:
- Andrew Hughes Hallett & Juan Carlos Martinez Oliva, 2012. "Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls," Global Economic Review, Taylor & Francis Journals, vol. 41(4), pages 319-340, December.
- Andrew Hughes Hallett & Juan Carlos Martinez Oliva, 2011. "Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls," Macroeconomics Working Papers 23206, East Asian Bureau of Economic Research.
- Hallett, Andrew Hughes & Oliva, Juan Carlos Martinez, 2011. "Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls," ADBI Working Papers 330, Asian Development Bank Institute.
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-14 (All new papers)
- NEP-IFN-2012-03-14 (International Finance)
- NEP-MON-2012-03-14 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Center for International and Development Economics Research, Working Paper Series
qt7bw468wx, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
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- Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "The Revived Bretton Woods System: The Effects of Periphery Intervention and Reserve Management on Interest Rates & Exchange Rates in Center Countries," NBER Working Papers 10332, National Bureau of Economic Research, Inc.
- Andrew Hughes Hallett & Juan Martinez Oliva, 2012. "Reducing Global Imbalances: Can Fixed Exchange Rates and Current Account Limits Help?," Open Economies Review, Springer, vol. 23(1), pages 163-192, February.
- Gärtner, Manfred & Griesbach, Björn, 2012. "Rating agencies, self-fulfilling prophecy and multiple equilibria? An empirical model of the European sovereign debt crisis 2009-2011," Economics Working Paper Series 1215, University of St. Gallen, School of Economics and Political Science.
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