International Capital Flow Pressures and Global Factors

We study the risk sensitivity of international capital flow pressures using a new Exchange Market Pressure index that combines pressures observed in exchange rate adjustments with estimated incipient pressures that are masked by foreign exchange interventions and policy rate adjustments. The sensitivity of capital flow pressures to risk sentiment evolves over time, varies significantly across countries and across stress events. So called ”safe-haven” status also evolves, with status defined relative to reference currencies, and generally not a feature over all time periods. Across countries, country gross external positions, country size and capital account openness increasingly explain risk sensitivities.

• Publication year

  2023

• Venue

  Social Science Research Network

• Publication date

  2023-01-01

• Fields of study

  Not labeled

• Identifiers
  DOI 10.2139/ssrn.4342386
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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