Capital Flows, Asset Prices and Output in Emerging Market Economies

Autor:	Ranjanendra Narayan Nag, Sayantan Bandhu Majumder, Sayan Baksi
Rok vydání:	2015
Předmět:	Marketing Macroeconomics Exchange rate Consumption-based capital asset pricing model Monetary policy Economics Stock market Dividend policy Sterilization (economics) Business and International Management Security market line General Economics Econometrics and Finance Aggregate supply
Zdroj:	Foreign Trade Review. 50:1-20
ISSN:	0971-7625 0015-7325
DOI:	10.1177/0015732514558138
Popis:	In this article we construct a simple open-economy macro model to examine how capital flows, monetary policy and dividend policies of firms influence asset prices, economic activity and inflation. In this model, we consider a three-asset framework based on domestic money, domestic equity and foreign bonds under flexible exchange rate. The model is based on the assumptions of imperfect asset substitutability and absence of sterilization. The model also incorporates an aggregate supply function in the presence of wage indexation. The model can apply to a large class of emerging market economies which have embarked on a programme of liberalization of the financial sector in general and stock market in particular.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a96aa5044558680aa80dee83fd7deb81 https://doi.org/10.1177/0015732514558138 Zobrazit plný text záznamu