01759cas a2200253 a 4500 AALejournalIMF000894 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451930979 1018-5941 BD-DhAAL BD-DhAAL Rojas-Suarez, Liliana. Financial Market Integration and Exchange Rate Policy / Liliana Rojas-Suarez, Donald Mathieson. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (66 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 how a country's exchange rate policy should be adjusted when the degree of integration between domestic and external financial markets increases as a result of both domestic financial liberalization and the relaxation of capital controls. As the financial structure is opened and liberalized, the optimal scale of exchange market intervention changes as the relative importance of different domestic and foreign shocks for output and price stability is altered. Nonetheless, the response of the optimal degree of intervention to increases in the variances of the various domestic and foreign shocks is similar across all financial structures. Mode of access: Internet Mathieson, Donald. IMF Working Papers; Working Paper ; No. 1990/002 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/002/001.1990.issue-002-en.xml IMF e-Library