Commodity Prices and Exchange Rate Volatility Lessons from South Africa's Capital Account Liberalization

Author/creator Dumitrescu, Elena Author
Other author Arezki, Rabah Author
Other author Freytag, Andreas Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description64 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation We examine the relationship between South African Rand and gold price volatility using monthly data for the period 1980-2010. Our main findings is that prior to capital account liberalization the causality runs from South African Rand to gold price volatility but the causality runs the other way around for the post-liberalization period. These findings suggest that gold price volatility plays a key role in explaining both the excessive exchange rate volatility and current disproportionate share of speculative (short-run) inflows that South Africa has been coping with since the opening up of its capital account.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781475511024
ISBN1475511027 (E-Book) Active Record
Stock number00013468

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