A Unifying Framework for Analysing Offsetting Capital Flows and Sterilization: Germany and the ERM

Sophocles Brissimis, Heather Gibson and Euclid Tsakalotos

International Journal of Finance & Economics, 2002, vol. 7, issue 1, 63-78

Abstract: This paper provides a unifying framework in which identified offset and sterilization equations can be derived and estimated. The theoretical model suggests that, in the case where the central bank cares about both external and internal goals and capital is less than perfectly mobile, there will be some offsetting capital flows and the central bank will sterilize. Several results from the literature are encompassed as special cases. The equations are estimated for the German experience of the 1980s and the results point to active sterilization by the Bundesbank during this period. Copyright @ 2002 by John Wiley & Sons, Ltd. All rights reserved.

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www3.interscience.wiley.com/cgi-bin/jtoc?ID=15416 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: A Unifying Framework for Analysing Offsetting Capital Flows and Sterilisation (1997)
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: https://EconPapers.repec.org/RePEc:ijf:ijfiec:v:7:y:2002:i:1:p:63-78

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().