Global imbalances in a world of inflexible real exchange rates and capital controls

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 330

Classification and Topics

• Classification: Wirtschaft ; Trade Policy; International Trade Organizations ; Current Account Adjustment; Short-term Capital Movements ; International Lending and Debt Problems
• Subject: Zahlungsbilanzgleichgewicht ; Portfolio-Management ; Kaufkraftparität ; Fester Wechselkurs ; Kapitalverkehrspolitik ; Kapitalertrag ; Volatilität ; Zwei-Länder-Modell ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hallett, Andrew Hughes ; Martinez Oliva, Juan Carlos
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/53737
• Last update: 10.03.2025, 11:43 AM CET