02088cas a2200253 a 4500 AALejournalIMF015958 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513516080 1018-5941 BD-DhAAL BD-DhAAL David, Antonio. In Search of Lost Time : Examining the Duration of Sudden Stops in Capital Flows / Antonio David, Carlos Eduardo Goncalves. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (33 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 investigates what factors affect the duration of sudden stops in capital flows using quarterly data for a large panel of countries. We find that countries with floating exchange rate regimes tend to experience shorter sudden stop episodes and that fixed exchange rate regimes are associated with longer periods of low output growth following sudden stops. These effects are quantitatively large: having a flexible exchange rate regime increases the probability of exiting the sudden stop state by between 50 to 80 percent. Flexible exchange rate regimes significantly shorten the duration of output decelerations following sudden stops by over 30 percent. Positive variations in terms of trade also abbreviate the duration of sudden stops. In terms of policies, identification is trickier, but the evidence suggests that monetary policy tightening shortens the duration of sudden stops. Changes in capital account restrictions do not seem to matter. Mode of access: Internet Goncalves, Carlos Eduardo. IMF Working Papers; Working Paper ; No. 2019/230 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/230/001.2019.issue-230-en.xml IMF e-Library