Carry trade and exchange-rate regimes

Carry trade and exchange-rate regimes
Laura Alfaro, Laura Alfaro
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Last edited by MARC Bot
September 10, 2024 | History

Carry trade and exchange-rate regimes

Carry-trade activity and foreign participation in local-currency-bond markets in emerging countries have increased dramatically over the past decade. In light of these trends, we revisit the question of the optimal exchange-rate regime when developing countries can borrow internationally with local-currency-denominated debt. We find that, as local currency bond markets develop, a "pseudo-flexible regime," whereby a country accumulates reserves in conjunction with debt, to be the best policy alternative under real external shocks for emerging nations.

Publish Date
Language
English
Pages
29

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Book Details


Edition Notes

"February 2013" -- Publisher's website.

Includes bibliographical references (pages 23-25).

Published in
Boston ]
Series
Working paper / Harvard Business School -- 13-074, Working paper (Harvard Business School) -- 13-074

The Physical Object

Pagination
29 pages
Number of pages
29

Edition Identifiers

Open Library
OL53781040M
OCLC/WorldCat
838556187

Work Identifiers

Work ID
OL39528016W

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