Exchange Rates and External Adjustment: Does Financial Globalization Matter?

Philip Lane and Gian Maria Milesi-Ferretti ()

The Institute for International Integration Studies Discussion Paper Series from IIIS

Abstract: This paper addresses the implications of financial globalization for exchange rate behavior. We highlight two dimensions: first, a wider dispersion in net foreign asset positions implies stronger long-term trends in real exchange rates; second, the impact of currency movements on net external wealth is an increasing function of the scale of international balance sheets.

Keywords: Financial integration; exchange rates (search for similar items in EconPapers)
JEL-codes: F31 F32 (search for similar items in EconPapers)
Date: 2006-05-22
New Economics Papers: this item is included in nep-cba, nep-fmk, nep-ifn and nep-mon
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:iis:dispap:iiisdp129

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