Financial Globalization and Exchange Rates

Gian Maria Milesi-Ferretti () and Philip Lane

No 4745, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: The founders of the Bretton Woods System sixty years ago were primarily concerned with orderly exchange rate adjustment in a world economy that was characterized by widespread restrictions on international capital mobility. In contrast, the rapid pace of financial globalization during recent years poses new challenges for the international monetary system. In particular, large gross cross-holdings of foreign assets and liabilities means that the valuation channel of exchange rate adjustment has grown in importance, relative to the traditional trade balance channel. Accordingly, this Paper empirically explores some of the inter-connections between financial globalization and exchange rate adjustment and discusses the policy implications.

Keywords: Financial integration; Capital flows; External assets and liabilities (search for similar items in EconPapers)
JEL-codes: F31 F32 (search for similar items in EconPapers)
Date: 2004-11
New Economics Papers: this item is included in nep-acc and nep-ifn
References: Add references at CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
https://cepr.org/publications/DP4745 (application/pdf)

Related works:
Working Paper: Financial Globalisation and Exchange Rates (2005)
Working Paper: Financial Globalization and Exchange Rates (2005)
Working Paper: Financial Globalization and Exchange Rates (2004)
Working Paper: Financial globalization and exchange rates (2004)
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:cpr:ceprdp:4745

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP4745

Access Statistics for this paper

More papers in CEPR Discussion Papers from Centre for Economic Policy Research 33 Great Sutton Street, London EC1V 0DX, UK.
Bibliographic data for series maintained by CEPR ().