TY  - BOOK
AU  - Frankel,Jeffrey A.
TI  - Sterilization of Money Inflows: Difficult (Calvo) or Easy (Reisen)? 
T2  - IMF Working Papers; Working Paper
SN  - 1451857624 :
SN  - 1018-5941
PY  - 1994///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Capital Inflow
KW  - imf
KW  - Capital Inflows
KW  - Capital Mobility
KW  - Central Bank
KW  - Money Supply
KW  - China, People's Republic of
KW  - Colombia
KW  - Mexico
KW  - Taiwan Province of China
N2  - 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
UR  - http://elibrary.imf.org/view/IMF001/06503-9781451857627/06503-9781451857627/06503-9781451857627.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451857627
ER  -