Renouf Publishing Co. Ltd.
embedded image
Renouf
Online Bookstore

ABOUT SSL CERTIFICATES

 
Quick Search
for: 
in 
 
Advanced search
F.A.Q.
Featured books
New in print
Best Sellers
President's picks

Shopping cart/Checkout  [0]
Sign-up for eUpdates
In Search of Lost Time
Examining the Duration of Sudden Stops in Capital Flows

by Antonio David and Carlos Eduardo Gonçalves

Series:Working Paper No. 19/230
ISBN 9781513516080
Code: #WPIEA2019230

Publication year: 2019

Cdn: $27.00; US: $25.00
Paperback
Language: English
33 pages
Add to cart
This paper investigates what factors affect the duration of sudden stops in capital flows using quarterly data for a large panel of countries. We find that countries with floating exchange rate regimes tend to experience shorter sudden stop episodes and that fixed exchange rate regimes are associated with longer periods of low output growth following sudden stops. These effects are quantitatively large: having a flexible exchange rate regime increases the probability of exiting the sudden stop state by between 50 to 80 percent. Flexible exchange rate regimes significantly shorten the duration of output decelerations following sudden stops by over 30 percent. Positive variations in terms of trade also abbreviate the duration of sudden stops. In terms of policies, identification is trickier, but the evidence suggests that monetary policy tightening shortens the duration of sudden stops. Changes in capital account restrictions do not seem to matter.
In Search of Lost Time
Cdn: $27.00; US: $25.00
International Monetary Fund (IMF) BookID: 126372 Added: 2019.11.25