Publications by Date

Frankel J. "Sterilization of Money Inflows: Difficult (Calvo) or Easy (Reisen)?". Estudios de Economia (Universidad de Chile: Santiago). 1997;24 (2) :263-285. Publisher's VersionAbstract

Some countries undergoing exchange-rate-based stabilization and financial liberalization in Latin America and elsewhere have faced large capital inflows since 1991. Many have tried to sterilize the reserve inflows. Calvo and co-authors argue essentially that sterilization is more difficult than generally realized, due to the interest costs on sterilization bonds. Reisen argues essentially that sterilization is easier than generally believed. This paper reviews the issues in the simplest textbook model. The conclusions are that local interest rates are not likely to rise if the source of the disturbance is an exogenous capital inflow, but will rise if the disturbance is an increase in money demand or an increase in exports. In every case, sterilized intervention will leave interest rates higher than they would be if the inflow took place unsterilized. The case where the domestic money supply and the rest of the economy are insulated from foreign disturbances despite perfect capital mobility and a fixed exchange rate, which Reisen attributes to Southeast Asia, is seen to be the case where domestic agents are unresponsive to interest rates.

sterilztncalvovreisen_estudiosec1997.pdf sterlztncalvoreisencartagena-1994wp.pdf
Frankel J. The Dollar's Demise? Future of the Dollar as the World's Principal Reserve Asset. Strategic Economic Decisions. 1997. Publisher's Version
Frankel J, Wei S-J. The New Regionalism and Asia: Impact and Options. In: The Global Trading System and Developing Asia. ; 1997. Publisher's Version
Frankel J, Wei S-J. ASEAN in a Regional Perspective. Macroeconomic Issues Facing ASEAN Countries. 1997. Publisher's Version
Frankel J, Rose A. Economic Structure and the Decision to Adopt a Common Currency. CIDER WP . 1997;(C96-073). Publisher's Version
Frankel J. Preventing Bank Crises: Lessons from Recent Global Bank Failures, Keynote Speech, in Lake Bluff, Illinois ; 1997. Publisher's Version
Frankel J. The Second Clinton Administration's Policies Toward Korea and East Asia, in Address to the Korea-US Twenty-First Century Council. Washington ; 1997. Publisher's Version
Frankel J, Galli G, Giovannini A. The Microstructure of Foreign Exchange Markets. Chicago: University of Chicago Press; 1996.
Frankel J, Rose A. A Panel Project on Purchasing Power Parity: Mean-Reversion Within and Between Countries. Journal of International Economics. 1996;40 (1-2) :209-224. Publisher's Version
Frankel J, Eichengreen B. The SDR, Reserve Currencies, and the Future of the International Monetary System. In: The Future of the SDR in Light of Changes in the International Financial System. ; 1996. Publisher's Version
Frankel J, Rose A. A Survey of Empirical Research on Nominal Exchange Rates. NBER Working Paper Series. 1996;(4865). Publisher's Version
Frankel J. Recent Exchange Rate Experience and Proposals for Reform. American Economic Review. 1996;86 (2) :153-158. Publisher's Version
Frankel J, Okongwu C. Liberalized Portfolio Capital Inflows in Emerging Markets: Sterilization, Expectations, and the Incompleteness of Interest Rate Convergence. International Journal of Finance and Economics . 1996;1 (1) :1-23. Publisher's Version
Frankel J, Rose A. Currency Crashes in Emerging Markets: An Empirical Treatment. Journal of International Economics. 1996;41 (3/4) :351-366. frankel.pdf
Frankel J, Schmukler SL. Country Fund Discounts and the Mexican Crisis of 1994: Did Mexican Residents Turn Pessimistic Before International Investors?. Open Economies Review. 1996;7 :511-534. Publisher's Version
Frankel J, Schmukler SL. Crises, Contagion, and Country Funds: Effects on East Asia and Latin America. In: Managing Capital Flows and Exchange Rates: Lessons from the Pacific Rim. Cambridge University Press ; 1996. ssrn-id9516.pdf
Frankel J, Engel C, Froot KA, Rodrigues AP. The Constrained Asset Share Estimation (CASE) Method: Testing Mean-Variance Efficiency of the U.S. Stock Market. Journal of Empirical Finance. 1995;2 :3-18. Link
Frankel J. Recent Exchange Rate Experience, The Tobin Tax, and Other Proposals for Reform, in Federal Reserve Bank of Dallas. ; 1995.
Frankel J. Still the Lingua Franca: The Exaggerated Death of the Dollar. Foreign Affairs. 1995;74 (4) :9-16. Publisher's Version
Frankel J, Chinn M. Survey Data on Exchange Rate Expecatations: More Currencies, More Horizons, More Tests, in AEA Meetings . Washington, DC ; 1995. Publisher's Version