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RePEcMacro-Finance & Rates

Capital flows and exchange rates: A quantitative assessment of the dilemma hypothesis

In response to US monetary tightening, financial channels dominate for small open economies: credit spreads widen and output falls despite currency depreciation.

Featured in No. 132 on 25 Sep 2026 · 11 days after release

Impulse responses showing GDP, exports, exchange rate, and credit spread with and without financial frictions.
Figure 4: The role of financial frictions.
Released
14 Sep 2026
First featured
No. 132 · 25 Sep 2026
Published in
Not yet, as far as Semantic Scholar knows
Fanfare
3 of 5
Identifier
RePEc:boe:boeewp:023263
Authors
Ambrogio Cesa-Bianchi et al.

Citations and venue from Semantic Scholar (ODC-BY), refreshed weekly. Summary: Quant Letter (CC BY 4.0).

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