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Capital Flows, Openess and Real Exchange Rate Variability

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  • Rodrigo Cerda

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract

This paper examines the response of real exchange rate to capital flow movements. It shows that countries with a large tradable sector will face smaller variability on their real exchange rate for a given level of capital flows and thus they will need smaller reallocations of real resources.

Suggested Citation

  • Rodrigo Cerda, 2002. "Capital Flows, Openess and Real Exchange Rate Variability," Documentos de Trabajo 205, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:205
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    File URL: https://www.economia.uc.cl/docs/doctra/dt-205.pdf
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