Financial Flows Can Create Exchange Rate Issues

Author: Raquel Almeida Ramos
Thematic Area: Inclusive Growth

Abstract:eveloping countries have been receiving increasing amounts of finance-related flows, which are also becoming more volatile —two features that increase the importance of such flows in determining exchange rates. This process is part of broader changes in the relationship between the ‘financial’ and the ‘real’ sectors, characterised by the increasing importance of financial assets and motives. These changes have been referred to as financialisation. (…)

Keywords:financial flows, exchange rate issues
Publication Date:
Type/Issue:One Pager/181
ISSN:2318-9118

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