Abstract
February 01 2018 Summary of the General Discussion on “Exchange Rate Flexibility, Financial Market Openness, and Economic Growth” Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2018 by the Asian Economic Panel and the Massachusetts Institute of Technology2018Massachusetts Institute of Technology Asian Economic Papers (2018) 17 (1): 168–170. https://doi.org/10.1162/asep_a_00598 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Summary of the General Discussion on “Exchange Rate Flexibility, Financial Market Openness, and Economic Growth”. Asian Economic Papers 2018; 17 (1): 168–170. doi: https://doi.org/10.1162/asep_a_00598 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Maria Socorro Gochoco-Bautista questioned the hypothesis of the paper, which examines the role of exchange rate flexibility on growth. She thought this was a misinterpretation of Rey's paper on the inapplicability of the Mundellian trilemma given capital mobility. Rey points out that asset prices, capital flows, credit growth, and so forth, follow global factors. As a result, there is a loss of monetary independence. The latter is a problem because a country's business cycle typically does not follow the global financial cycle. Without monetary independence, therefore, countries lose the use of monetary policy to implement countercyclical policy in their countries. Rey then states that to have some measure of independence, authorities should use some capital flow management measures in addition to having more flexible exchange rates. Exchange rate flexibility is no longer sufficient to insulate the real economy from external shocks in the face of capital mobility, contrary to the... You do not currently have access to this content.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
