UID:
almafu_9960178322902883
Format:
1 online resource (46 pages)
Edition:
1st ed.
ISBN:
9781484303948
,
1484303946
,
9781484304037
,
1484304039
Series Statement:
IMF Working Papers
Content:
This paper examines the claim that exchange rate regimes are of little salience in the transmission of global financial conditions to domestic financial and macroeconomic conditions by focusing on a sample of about 40 emerging market countries over 1986–2013. Our findings show that exchange rate regimes do matter. Countries with fixed exchange rate regimes are more likely to experience financial vulnerabilities—faster domestic credit and house price growth, and increases in bank leverage—than those with relatively flexible regimes. The transmission of global financial shocks is likewise magnified under fixed exchange rate regimes relative to more flexible (though not necessarily fully flexible) regimes. We attribute this to both reduced monetary policy autonomy and a greater sensitivity of capital flows to changes in global conditions under fixed rate regimes.
Note:
Cover -- Contents -- I. Introduction -- II. Stylized Facts -- III. Does the Exchange Rate Regime Matter? -- A. Domestic Financial Conditions -- B. Capital Flows -- C. Effects on the Real Economy -- IV. Sensitivity Analysis -- V. Conclusion -- References -- Appendix -- Tables -- 1. Real Domestic Credit Growth in EMEs, 1986Q1-2013Q4 -- 2. Real House Price Growth in EMEs, 1986Q1-2013Q4 -- 3. Real Stock Returns in EMEs, 1986Q1-2013Q4 -- 4. Change in Loan-to-Deposit Ratio in EMEs, 1986Q1-2013Q4 -- 5. Net Capital Flows in EMEs, 1986Q1-2013Q4 -- 6. Liability Flows in EMEs, 1986Q1-2013Q4 -- 7. Asset Flows in EMEs, 1986Q1-2013Q4 -- 8. FDI, Portfolio, and Other Investment Liability Flows in EMEs, 1986Q1-2013Q4 -- 9. Real GDP Growth in EMEs, 1986Q1-2013Q4 -- 10. Robustness Analysis: Alternate Specifications -- 11. Robustness Analysis: Further Checks -- A1. List of countries in the sample -- A2. Variable description and data sources -- A3. Financial Conditions and Disaggregated Exchange Rate Regimes -- A4. Domestic Credit Growth and Exchange Rate Regimes in Advanced Economies -- A5. Capital Flows and Disaggregated Exchange Rate Regimes -- Figures -- 1. Net Capital Flows and Domestic Credit in EMEs, 2010-13 -- 2. De Facto Exchange Rate Regimes in EMEs, 1986-2013 -- 3. Global Factors and Capital Flows to EMEs, 1986Q1-2013Q4 -- 4. Global Risk Aversion, Capital Flows and Financial Variables in EMEs -- 5. Correlation of Financial and Macroeconomic Variables in EMEs -- 6. Correlation of Financial and Macroeconomic Variables in Advanced Countries.
Additional Edition:
ISBN 9781484302620
Additional Edition:
ISBN 1484302621
Language:
English
