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 ...

Verfasser: Botta, Alberto
Dokumenttyp: Working Paper
Erscheinungsdatum: 2015
Verlag/Hrsg.: University of Greenwich
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/