02036cas a2200265 a 4500 AALejournalIMF023161 230101c9999 xx r poo 0 0eng d 20.00 USD 9781484302620 1018-5941 BD-DhAAL BD-DhAAL Obstfeld, Maurice. A Tie That Binds : Revisiting the Trilemma in Emerging Market Economies / Maurice Obstfeld, Jonathan Ostry, Mahvash Qureshi. Washington, D.C. : International Monetary Fund, 2017. 1 online resource (45 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 examines the claim that exchange rate regimes are of little salience in the transmission of global financial conditions to domestic financial and macroeconomic conditions by focusing on a sample of about 40 emerging market countries over 1986-2013. Our findings show that exchange rate regimes do matter. Countries with fixed exchange rate regimes are more likely to experience financial vulnerabilities-faster domestic credit and house price growth, and increases in bank leverage-than those with relatively flexible regimes. The transmission of global financial shocks is likewise magnified under fixed exchange rate regimes relative to more flexible (though not necessarily fully flexible) regimes. We attribute this to both reduced monetary policy autonomy and a greater sensitivity of capital flows to changes in global conditions under fixed rate regimes. Mode of access: Internet Ostry, Jonathan. Qureshi, Mahvash. IMF Working Papers; Working Paper ; No. 2017/130 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2017&issue=130 IMF e-Library