Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/130632 
Erscheinungsjahr: 
2016
Schriftenreihe/Nr.: 
Staff Report No. 765
Verlag: 
Federal Reserve Bank of New York, New York, NY
Zusammenfassung: 
This paper explores the role of capital flows and exchange rate dynamics in shaping the global economy's adjustment in a liquidity trap. Using a multi-country model with nominal rigidities, we shed light on the global adjustment since the Great Recession, a period when many advanced economies were pushed to the zero bound on interest rates. We establish three main results. First, when the North hits the zero bound, downstream capital flows alleviate the recession by reallocating demand to the South and switching expenditure toward North goods. Second, a free capital flow regime falls short of supporting efficient demand and expenditure reallocations and induces too little downstream (upstream) flows during (after) the liquidity trap. And third, when it comes to capital flow management, individual countries' incentives to manage their terms of trade conflict with aggregate demand stabilization and global efficiency. This underscores the importance of international policy coordination in liquidity trap episodes.
Schlagwörter: 
capital flows
international spillovers
liquidity traps
uncovered interest parity
capital flow management
policy coordination
optimal monetary policy
JEL: 
E52
F32
F38
F42
F44
Dokumentart: 
Working Paper

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