Capital Account Policies and the Real Exchange Rate
Working Paper 18404
DOI 10.3386/w18404
Issue Date
This paper presents a simple model of how a small open economy can undervalue its real exchange rate using its capital account policies. The paper presents several properties of such policies, and proposes a rule of thumb to assess their welfare cost. The model is applied to an analysis of Chinese capital account policies.
Published Versions
Olivier Jeanne, 2013. "Capital Account Policies and the Real Exchange Rate," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 9(1), pages 7 - 42.
Capital Account Policies and the Real Exchange Rate, Olivier Jeanne. in NBER International Seminar on Macroeconomics 2012, Giavazzi and West. 2013