Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls

Andrew Hughes Hallett and Juan Carlos Martinez Oliva

Macroeconomics Working Papers from East Asian Bureau of Economic Research

Abstract: This paper addresses the issue of international payments in a stock-flow framework, by capturing the interaction between the current account balance and international assets portfolios of domestic and foreign investors. It is argued that the stability of such interaction may be affected by shifts in the preferences of investors, by the relative rate of return of different assets, and—more in general—by institutional settings. The model is then used for policy analysis purposes to derive the conditions for the existence of dynamic equilibria, and if they can be attained, under the assumption of market-distorting policy choices.

Keywords: exchange rate; current account balance; Applied General Equilibrium model; capital controls; dynamic equilibria (search for similar items in EconPapers)
JEL-codes: F13 F32 F34 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-opm
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.eaber.org/node/23206 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 301 [REDIRECT LOOP] Moved Permanently (http://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206 [301 Moved Permanently]--> https://www.eaber.org/node/23206)

Related works:
Journal Article: Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls (2012)
Working Paper: Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls (2011)
Working Paper: Global Imbalances in a World of Inflexible Real Exchange Rates and Capital Controls (2011)
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:eab:macroe:23206

Access Statistics for this paper

More papers in Macroeconomics Working Papers from East Asian Bureau of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Shiro Armstrong ().