Foreign Interest Rate Disturbance, Financial Flows and Physical Capital Accumulation in a Small Open Economy
研究了小型开放经济中外国利率扰动如何影响金融资本流动和实物资本积累，发现内生实物资本会改变汇率动态，利率上升导致资本减少、产出下降、外债增加和货币贬值。
This paper focuses on the interaction of financial capital movements and accumulation of physical capital in a small open economy faced with a foreign interest disturbance. It is shown that endogenizing physical capital has important implications for the exchange rate dynamics not captured by models which assume a fixed capital stock. An increase in the foreign interest rate leads to decumulation of physical capital, reduces the full employment level of output, increases foreign debt and depreciates the currency. Appropriate monetary and fiscal policies could counteract the effects on domestic wealth and the reduction in the stock of capital.