Currency carry trade and the cost of international reserves in Mexico

National strategies aimed at boosting economic growth following the global financial crisis have spawned monetary imbalances between industrial and emerging economies. By implementing ultra-expansionary monetary policies, the industrial economies drive down interest rates, while the emerging economi...

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Autores principales:	Rozo, Carlos A., Maldonado, Norma
Formato:	Texto
Lenguaje:	English
Publicado:	2018
Materias:	MOVIMIENTOS DE CAPITAL DIVISAS MERCADOS DE DIVISAS RESERVAS MONETARIAS COSTOS CAPITAL MOVEMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS MONETARY RESERVES COSTS
Acceso en línea:	http://hdl.handle.net/11362/43451
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spelling	oai-11362-434512020-03-06T16:50:27Z Currency carry trade and the cost of international reserves in Mexico Rozo, Carlos A. Maldonado, Norma MOVIMIENTOS DE CAPITAL DIVISAS MERCADOS DE DIVISAS RESERVAS MONETARIAS COSTOS CAPITAL MOVEMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS MONETARY RESERVES COSTS National strategies aimed at boosting economic growth following the global financial crisis have spawned monetary imbalances between industrial and emerging economies. By implementing ultra-expansionary monetary policies, the industrial economies drive down interest rates, while the emerging economies tighten their monetary policies by raising rates, thus generating a burgeoning foreign-currency carry trade. Vulnerability is caused by the sudden reversal of such capital flows or the high cost of insuring against this by accumulating reserves. This paper estimates that the cost of reserve accumulation between 2008 and 2014 averaged 1.83% of GDP, so the free capital mobility espoused by the Mexican authorities makes it very costly to play by the rules of financial globalization. 2018-04-10T21:04:29Z 2018-04-10T21:04:29Z 2017-12 Texto Sección o Parte de un Documento http://hdl.handle.net/11362/43451 LC/PUB.2017/24-P 7 en CEPAL Review CEPAL Review 123 .pdf application/pdf 2008 MEXICO MEXICO 2014
institution	Cepal
collection	Cepal
language	English
topic	MOVIMIENTOS DE CAPITAL DIVISAS MERCADOS DE DIVISAS RESERVAS MONETARIAS COSTOS CAPITAL MOVEMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS MONETARY RESERVES COSTS
spellingShingle	MOVIMIENTOS DE CAPITAL DIVISAS MERCADOS DE DIVISAS RESERVAS MONETARIAS COSTOS CAPITAL MOVEMENTS FOREIGN EXCHANGE FOREIGN EXCHANGE MARKETS MONETARY RESERVES COSTS Rozo, Carlos A. Maldonado, Norma Currency carry trade and the cost of international reserves in Mexico
description	National strategies aimed at boosting economic growth following the global financial crisis have spawned monetary imbalances between industrial and emerging economies. By implementing ultra-expansionary monetary policies, the industrial economies drive down interest rates, while the emerging economies tighten their monetary policies by raising rates, thus generating a burgeoning foreign-currency carry trade. Vulnerability is caused by the sudden reversal of such capital flows or the high cost of insuring against this by accumulating reserves. This paper estimates that the cost of reserve accumulation between 2008 and 2014 averaged 1.83% of GDP, so the free capital mobility espoused by the Mexican authorities makes it very costly to play by the rules of financial globalization.
format	Texto
author	Rozo, Carlos A. Maldonado, Norma
author_facet	Rozo, Carlos A. Maldonado, Norma
author_sort	Rozo, Carlos A.
title	Currency carry trade and the cost of international reserves in Mexico
title_short	Currency carry trade and the cost of international reserves in Mexico
title_full	Currency carry trade and the cost of international reserves in Mexico
title_fullStr	Currency carry trade and the cost of international reserves in Mexico
title_full_unstemmed	Currency carry trade and the cost of international reserves in Mexico
title_sort	currency carry trade and the cost of international reserves in mexico
publishDate	2018
url	http://hdl.handle.net/11362/43451
work_keys_str_mv	AT rozocarlosa currencycarrytradeandthecostofinternationalreservesinmexico AT maldonadonorma currencycarrytradeandthecostofinternationalreservesinmexico
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Currency carry trade and the cost of international reserves in Mexico

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