Real exchange rate appreciation usually accompanies stabilization programs based on the exchange rate. One thing that causes the real exchange rate to appreciate is the capital inflows that follow liberalization of the capital account and the financial market. Capital inflows cause the exchange rate to appreciate in part because of the resulting increase in expenditures. This appreciation is exacerbated if there is some price rigidity, and if control...
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INFORMACIÓN
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1989/02/28
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Documento de trabajo sobre investigaciones relativas a políticas
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WPS146
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1
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1
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2010/07/01
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Exchange rate based disinflation, wage rigidity, and capital inflows : tradeoffs for Chile, 1977-81
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Capital Inflows