02082cas a2200241 a 4500 AALejournalIMF010545 230101c9999 xx r poo 0 0eng d 15.00 USD 9781451956160 1020-7635 BD-DhAAL BD-DhAAL International Monetary Fund. Research Dept. IMF Staff papers : Volume 13 No. 1. Washington, D.C. : International Monetary Fund, 1966. 1 online resource (166 pages) IMF Staff 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 focuses on private capital movements and exchange rates in developing countries. The paper also highlights some implications of the analysis about the broader question of the effect of alternative exchange rate systems on capital flows. Capital movements respond to many factors which affect the yields expected by investors. Some of these, such as changes in the structure of the economy of the investee country, discoveries of mineral deposits, changes in exchange control or tax systems, the passage of investment laws, the amount of-and experience with-previous investments in the country, and, not least, the country's potential for economic growth, are very likely to play a more dominant role in the investment decision than expectations of changes in prices or exchange rates. The expectation of changes in the foreign exchange rate and in domestic prices and costs influences private capital movements, other things being equal, by altering the expected rate of return on assets which foreign investors may hold in the investee country. Mode of access: Internet IMF Staff Papers; IMF Staff Papers ; No. 1966/001 Full text available on IMF http://elibrary.imf.org/view/journals/024/1966/001/024.1966.issue-001-en.xml IMF e-Library