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Capital inflows and the real exchange rate: a comparative study of Asia and Latin America

Athukorala, Prema-Chandra; Rajapatirana, Sarath

Description

The nexus of real exchange rate (RER) and capital inflows is examined through a comparative analysis of the experiences of emerging market economies in Asian and Latin America during the period 1985-2000. It is found that the degree of appreciation in RER associated with capital inflow is uniformly much higher in Latin American countries compared to their Asian counterparts, despite the fact that the latter experienced far greater foreign capital inflows relative to the size of the economy. The...[Show more]

CollectionsANU Research Publications
Type: Journal article
URI: http://hdl.handle.net/1885/40618
Source: The World Economy
DOI: 10.1111/1467-9701.00539

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