The surge in capital flows: analysis of
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Pierre-Richard AgΓ©nor
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Article
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1998
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John Wiley and Sons
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English
β 300 KB
This paper uses an intertemporal optimizing model of a small open economy facing imperfect world capital markets to assess the effects of 'pull' and 'push' factors on capital flows, asset accumulation, and the real exchange rate. A positive money demand shock raises consumption and holdings of forei