01845cas a2200253 a 4500 AALejournalIMF000297 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855876 1018-5941 BD-DhAAL BD-DhAAL Agenor, Pierre-Richard. Capital Inflows and the Real Exchange Rate : Analytical Framework and Econometric Evidence / Pierre-Richard Agenor, Willy Hoffmaister. Washington, D.C. : International Monetary Fund, 1996. 1 online resource (50 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the links between capital inflows and the real exchange rate under pegged exchange rates. The analytical framework is described, and a near-VAR model linking capital inflows, interest rate differentials, government spending, money base velocity, and the temporary component of the real exchange rate (TCRER) is estimated for Korea, Mexico, the Philippines, and Thailand. TCRER movements are associated only weakly with shocks to capital flows. Negative shocks to U.S. interest rates lead to capital inflows in Asia and a TCRER appreciation in the Philippines and Thailand. Positive shocks to government spending have a small but statistically significant effect on the TCRER for Korea. Mode of access: Internet Hoffmaister, Willy. IMF Working Papers; Working Paper ; No. 1996/137 Full text available on IMF http://elibrary.imf.org/view/journals/001/1996/137/001.1996.issue-137-en.xml IMF e-Library