Does Higher Openness Cause More Real Exchange Rate Volatility?

The "New Open Economy Macroeconomics" argues that: (a) non-monetary factors have gained importance in explaining exchange rate volatility, and (b) trade and financial openness may have a potential role of mitigating and/or amplifying real...

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Bibliographic Details
Main Authors:	Calderón, César, Kubota, Megumi
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCOUNTING ADVANCED ECONOMIES BANK POLICY BILATERAL EXCHANGE RATE BILATERAL TRADE BLACK MARKET BOND BONDS BUDGET CONSTRAINT BUDGET CONSTRAINTS BUSINESS CYCLE BUSINESS CYCLES CAPITAL ACCOUNT CAPITAL ACCOUNT RESTRICTIONS CAPITAL ACCOUNT TRANSACTIONS CAPITAL FLOW CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS CAPITAL MOBILITY CAPITAL STRUCTURE CD CENTRAL BANK CIVIL CODE COMMODITIES CONSUMER PRICE INDEX CONSUMPTION SMOOTHING COUNTRY DUMMIES CREDITOR CROSS-BORDER TRANSACTIONS CURRENCY CURRENCY CRISES CURRENCY CRISIS CURRENCY UNION CURRENT ACCOUNT TRANSACTIONS DEBT DEBT ACCUMULATION DEBT FLOWS DEBT LEVELS DEBT-EQUITY DEBTOR DEBTOR COUNTRY DEGREE OF RISK DEPENDENT VARIABLE DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING ECONOMIES DOMESTIC FINANCIAL MARKETS DOMESTIC INTEREST RATES DUMMY VARIABLE DUMMY VARIABLES ECONOMIC PERFORMANCE ECONOMIC REFORM ECONOMIC STRUCTURE EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY FLOWS EXCHANGE ARRANGEMENTS EXCHANGE RATE EXCHANGE RATE DYNAMICS EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE INSTABILITY EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATE SYSTEMS EXCHANGE RATE VOLATILITY EXCHANGE RATES EXPOSURE FINANCIAL DERIVATIVES FINANCIAL DEVELOPMENT FINANCIAL FLOW FINANCIAL FLOWS FINANCIAL INTEGRATION FINANCIAL MARKET FINANCIAL MARKET INTEGRATION FINANCIAL MARKETS FINANCIAL OPENNESS FINANCIAL SHOCKS FINANCIAL TRANSACTIONS FISCAL CONSOLIDATION FISCAL POLICIES FISCAL POLICY FISCAL SHOCKS FIXED EXCHANGE RATE FIXED EXCHANGE RATES FIXED RATES FLEXIBLE EXCHANGE RATE FLEXIBLE EXCHANGE RATE REGIME FLEXIBLE EXCHANGE RATE REGIMES FLEXIBLE EXCHANGE RATES FLOATING EXCHANGE RATE FLOW OF CAPITAL FOREIGN ASSET FOREIGN ASSET POSITION FOREIGN ASSETS FOREIGN DEBT FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN EXCHANGE RATE FOREIGN LIABILITIES FOREIGN TRADE FREE TRADE GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM MODEL GLOBALIZATION GOLD GOLD STANDARD GOVERNMENT EXPENDITURE GOVERNMENT SPENDING GRAVITY MODEL HOLDING HOLDINGS HOME COUNTRY IMPACT OF SHOCKS IMPERFECT CAPITAL MOBILITY IMPORT INCOME INCOME GROUPS INCOME LEVEL INCOME LEVELS INDUSTRIAL COUNTRIES INFLATION INFLATION RATE INFLATION RATES INSTRUMENT INSTRUMENTAL VARIABLES INSURANCE INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL MARKETS INTERNATIONAL TRADE LEVY LIABILITY LIBERALIZATION LOAN LOCAL CURRENCY LOW-INCOME COUNTRIES MACROECONOMIC UNCERTAINTY MACROECONOMIC VOLATILITY MAJOR CURRENCIES MARKET INTEGRATION MIDDLE-INCOME COUNTRIES MONETARY AGGREGATES MONETARY AUTHORITIES MONETARY FUND MONETARY INSTABILITY MONETARY MODELS MONETARY POLICIES MONETARY POLICY MONETARY STABILITY MONEY DEMAND MONEY SUPPLY MONOPOLY NATURAL RESOURCES OIL PRICES OPEN ECONOMIES OPEN ECONOMY OUTPUT POLITICAL ECONOMY POLITICAL RISK PORTFOLIO PRIVATE INVESTMENT PRODUCTION STRUCTURE PUBLIC POLICY RATE OF GROWTH REAL EFFECTIVE EXCHANGE RATE REAL EFFECTIVE EXCHANGE RATES REAL ESTATE REAL EXCHANGE RATE REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATES REAL SHOCKS REGRESSION ANALYSIS RESERVES RETURN RETURNS RISK SHARING SHARE OF EQUITY SMALL COUNTRY SPEED OF ADJUSTMENT STEADY STATE STOCKS SUPPLY SHOCKS SUPPLY SIDE TRADE LIBERALIZATION TRADE OPENNESS TRADE REGIME TRADE REGIMES TRADE SHOCKS TRADING VOLATILITY WORLD DEVELOPMENT INDICATORS WORLD MARKETS
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090408093735 http://hdl.handle.net/10986/4090