Capital Account Policies and the Real Exchange Rate
Chapter in NBER book NBER International Seminar on Macroeconomics 2012 (2013), Francesco Giavazzi and Kenneth D. West, organizers (p. 7 - 42)
This paper presents a simple model of how a small open economy can undervalue its real exchange rate using its capital account policies. The paper presents several properties of such policies, and proposes a rule of thumb to assess their welfare cost. The model is applied to an analysis of Chinese capital account policies.
Document Object Identifier (DOI): 10.1086/669583This chapter first appeared as NBER working paper w18404, Capital Account Policies and the Real Exchange Rate, Olivier Jeanne
Commentary on this chapter:
Comment, Javier Bianchi
Comment, Lars E. O. Svensson
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