Globalization, Macroeconomic Performance, and the Exchange Rates of Emerging Economies
Center for International and Development Economics Research, Working Paper Series from Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley
Among the developing countries of the world, those emerging markets that have sought some degree of integration into world finance are characterized by higher per capita incomes, higher long-run growth rates, and lower output and consumption volatility. These characteristics are more likely to be causes than effects of financial integration. The measurable gains from financial integration appear to be lower for emerging markets than for higher-income countries, and appear to have been limited by recent crises. One factor limiting the gains from financial integration is the difficulty emerging economies face in resolving the open-economy trilemma. Given their structural and institutional features, many emerging economies cannot live comfortably either with fixed or with freely floating exchange rates. Most recently, the exchange rates of several emerging countries display attempts at stabilization punctuated by high volatility in periods of market stress.
Keywords: Developing countries; emerging markets; convergence; macroeconomic volatility; exchange-rate regimes; institutions; dollarization; original sin (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (9) Track citations by RSS feed
Downloads: (external link)
Working Paper: Globalization, Macroeconomic Performance, and the Exchange Rates of Emerging Economies (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:cdl:ciders:qt7q670769
Access Statistics for this paper
More papers in Center for International and Development Economics Research, Working Paper Series from Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley
Contact information at EDIRC.
Series data maintained by Lisa Schiff ().