| Description |
1 online resource (26 pages) |
| Series |
IMF Working Papers, 2227-8885 ; WP/13/119 |
|
IMF working paper ; WP/13/119
|
| Contents |
Cover; Contents; 1 Introduction; 2 Openness in emerging markets; 2.1 Financial versus trade openness; 2.2 Relative volatility of the terms of trade; 2.3 Current account volatility; 3 Case of India; 3.1 Limited financial openness; 3.2 Role of terms of trade; 4 Model; 5 Calibration; 6 Results; 6.1 Financial openness and volatility; 6.2 Business cycle features of an emerging economy; 7 Conclusion |
| Summary |
This paper analyses the extent to which financial integration impacts the manner in which terms of trade affect business cycles in emerging economies. Using a s mall open economy model, we show that as capital account openness increases in an economy that faces trade shocks, business cycle volatility reduces. For an economy with limited financial openness, and a relatively open trade account, a model with exogenous terms of trade shocks is able to replicate the features of the business cycle |
| Notes |
Available in PDF, ePUB, and Mobi formats on the Internet |
| Bibliography |
Includes bibliographical references (pages 23-25) |
| Subject |
Foreign exchange.
|
|
Business cycles.
|
|
Business cycles
|
|
Foreign exchange
|
| Form |
Electronic book
|
| Author |
Patnaik, Ila, author
|
|
Pundit, Madhavi, author
|
|
International Monetary Fund, issuing body
|
| ISBN |
1484372514 |
|
1484354605 |
|
9781484354605 |
|
9781484372517 |
|
