01508cas a2200241 a 4500 AALejournalIMF002869 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451845051 1018-5941 BD-DhAAL BD-DhAAL Klyuev, Vladimir. Imperfect Capital Mobility in an Open Economy Model of Capital Accumulation / Vladimir Klyuev. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (19 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 introduces a tractable capital market friction mechanism that allows a break of the parity between domestic and external interest rates and generates a gradual evolution of capital stock and other macroeconomic variables-in contrast to the instantaneous convergence found in models with interest rate parity. The friction, derived from explicit microfoundations, is such that the cost of new loans is an increasing function of net borrowing. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2004/031 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/031/001.2004.issue-031-en.xml IMF e-Library