Economics at your fingertips  

Capital Flows, External Fragility and Currency Regimes

Luciano Ferreira Gabriel () and José Luís Oreiro ()

Brazilian Journal of Political Economy, 2008, vol. 28, issue 2, 331-357

Abstract: The major integration and deregulation of the international financial markets increased the degree of interdependence and risk of incompatibility between the financial and monetary policy adopted by different countries. The consequences of these facts are the financial instability and the currency crisis. In this article we develop arguments advocating that independent of the currency regime adopted the national policy makers should take into account, between other factors, the major capital mobility and the integrations of markets. One of the corollaries of our analyses is that countries should pursue policies that reduces the degree of short-term capital volatile by the adoption of capital controls or though measures of prudential supervision. JEL Classification: E44; F31; F32; F36.

Keywords: currency regime; capital flows; self-fulfilling prophecies; sunspots; herding behavior (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... article/view/531/529 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().

Page updated 2022-09-21
Handle: RePEc:ekm:repojs:v:28:y:2008:i:2:p:331-357:id:531