The macroeconomics of a financial Dutch disease
We describe the medium-run macroeconomic effects and long-run development consequences of a financial Dutch disease that may take place in a small developing country with abundant natural resources. The first move is in financial markets. An initial surge in foreign direct investment targeting natural resources sets in motion a perverse cycle between exchange rate appreciation and mounting short- and medium-term capital flows. Such a spiral easily leads to exchange rate volatility, capital reversals, and sharp macroeconomic instability. In the long run, macroeconomic instability and overdepend... Mehr ...
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Dokumenttyp: | Working Paper |
Erscheinungsdatum: | 2015 |
Verlag/Hrsg.: |
University of Greenwich
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Schlagwörter: | H Social Sciences (General) |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-29033591 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | http://gala.gre.ac.uk/id/eprint/14065/ |