Capital Flows and Monetary Policy

Número: 
395
Publicado: 
Clasificación JEL: 
F41, F32, G15, H62, H63
Palabras clave: 
Sudden stops, Credit booms, Country risk, Fear of floating

Capital inflows and outflows often remind policymakers of the monetary policy "trilemma" and the several associated dilemmas. To tackle these dilemmas, an equilibrium model of capital flows is proposed. The model captures bouts of capital inflows and outf