01794cas a2200265 a 4500 AALejournalIMF006977 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455211876 1018-5941 BD-DhAAL BD-DhAAL Combes, Jean-Louis. Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate / Jean-Louis Combes, Patrick Plane, Tidiane Kinda. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (34 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 analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation. Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows. Mode of access: Internet Kinda, Tidiane. Plane, Patrick. IMF Working Papers; Working Paper ; No. 2011/009 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/009/001.2011.issue-009-en.xml IMF e-Library