文章基本信息

标题：Exchange rates and monetary spillovers
本地全文：下载
作者：Guillaume Plantin ; Hyun Song Shin
期刊名称：Theoretical Economics
印刷版ISSN：1555-7561
出版年度：2018
卷号：13
期号：2
页码：637-666
DOI：10.3982/TE2669
语种：English
出版社：Econometric Society
摘要：When do flexible exchange rates prevent monetary and financial conditions from spilling over across currencies? We examine a model in which international investors strategically supply capital to a small inflation‐targeting economy with flexible exchange rates. For some combination of parameters, the unique equilibrium exhibits the observed empirical feature of prolonged episodes of capital inflows and appreciation of the domestic currency, followed by reversals where capital outflows go hand‐in‐hand with currency depreciation, a rise in domestic interest rates, and inflationary pressure. Arbitrarily small shocks to global financial conditions suffice to trigger these dynamics.