We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Capital Account Liberalization and the Exchange Rate Regimes in Developing Countries.
- Authors
Aker, Şule L.; Aker, Ahmet M.
- Abstract
In this study, the relationship between short-term capital flows and exchange rate regimes is analysed. The results show that sample countries receive less short-term capital flows under floating exchange regimes compared to fixed exchange rates under liberal capital account conditions. Under fixed exchange rate system authorities try to fix the exchange rate artificially thus the difference between the nominal exchange rate and expected exchange rate grows providing room for speculative gains. On the other hand, the difference is exhausted quickly under floating exchange rates before speculative gains reach a meaningful sum.
- Subjects
CAPITAL movements; FOREIGN exchange rates; PROFIT; CAPITAL; CAPITAL market; NEOLIBERALISM
- Publication
Banking & Finance Letters, 2009, Vol 1, Issue 2, p5
- ISSN
1308-6588
- Publication type
Article