Title Exchange rate flexibility, volatility and the patterns of domestic and foreign direct investment / prepared by Joshua Aizenman ; authorized for distribution by Michael Mussa

Published [Washington, D.C.?] : International Monetary Fund, Research Department, [1992]

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Description 1 online resource (iii, 21 pages) : illustrations Series IMF working paper ; WP/92/20 IMF working paper ; WP/92/20. Summary Annotation This paper investigates the factors determining the impact of exchange rate regimes on the behavior of domestic investment and foreign direct investment (FDI). Producers may diversify internationally in order to increase the flexibility of production. We characterize the possible equilibria in a macro model that allows for the presence of a short-run Phillips curve. It is shown that a fixed exchange rate regime is more conducive to FDI relative to a flexible exchange rate, and this conclusion applies for both real and nominal shocks. If the dominant shocks are nominal (real) we will observe a negative (a positive) correlation between exchange rate volatility and the level of investment Bibliography Includes bibliographical references (pages 20-21) Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record Subject Foreign exchange rates -- Econometric models Investments, Foreign -- Econometric models Investments. Investments Investments Foreign exchange rates -- Econometric models Investments, Foreign -- Econometric models Form Electronic book Author International Monetary Fund. Research Department, issuing body. ISBN 1455222097 9781455222094

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