NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Globalization, Macroeconomic Performance, and the Exchange Rates of Emerging Economies

Maurice Obstfeld

NBER Working Paper No. 10849
Issued in October 2004
NBER Program(s):   IFM

Among the developing countries of the world, those emerging markets that have sought some degree of integration into world finance are characterized by higher per capita incomes, higher long-run growth rates, and lower output and consumption volatility. These characteristics are more likely to be causes than effects of financial integration. The measurable gains from financial integration appear to be lower for emerging markets than for higher-income countries, and appear to have been limited by recent crises. One factor limiting the gains from financial integration is the difficulty emerging economies face in resolving the open-economy trilemma. Given their structural and institutional features, many emerging economies cannot live comfortably either with fixed or with freely floating exchange rates. Most recently, the exchange rates of several emerging countries display attempts at stabilization punctuated by high volatility in periods of market stress.

download in pdf format
   (518 K)

email paper

This paper is available as PDF (518 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10849

Published: Obstfeld, Maurice. "Globalization, Macroeconomic Performance, and the Exchange Rates of Emerging Economies." Monetary and Economic Studies (Bank of Japan), December 2004.

Users who downloaded this paper also downloaded these:
Obstfeld and Rogoff w10869 The Unsustainable US Current Account Position Revisited
Dooley, Folkerts-Landau, and Garber w9971 An Essay on the Revived Bretton Woods System
Mishkin w13948 Globalization, Macroeconomic Performance, and Monetary Policy
Edwards w8076 Capital Mobility and Economic Performance: Are Emerging Economies Different?
Edwards and Savastano w7228 Exchange Rates in Emerging Economies: What Do We Know? What Do We Need to Know?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us