01792cas a2200241 a 4500 AALejournalIMF006719 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451857627 1018-5941 BD-DhAAL BD-DhAAL Frankel, Jeffrey. Sterilization of Money Inflows : Difficult (Calvo) or Easy (Reisen)? / Jeffrey Frankel. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (38 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 Some countries undergoing exchange-rate-based stabilization and financial liberalization in Latin America, Asia and elsewhere have faced large capital inflows since 1991. Many have tried to sterilize the reserve inflows. Calvo, Leiderman, and Reinhart argue essentially that sterilization is more difficult than generally realized, due to the interest costs on sterilization bonds. Reisen argues essentially that sterilization is easier than generally believed. This paper reviews the issues in the simplest textbook model and concludes that local interest rates are not likely to rise if the source of the disturbance is an exogenous capital inflow, but will rise if the disturbance is an increase in money demand or an increase in exports. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1994/159 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/159/001.1994.issue-159-en.xml IMF e-Library