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Implications for monetary policy disruption sterilization in developing countries, Korea A Case Study | ||
| Iraqi Journal For Economic Sciences | ||
| Article 1, Volume 0, Issue 17, 2017, Pages 35-57 | ||
| Author | ||
| Dr.Subhi Hassoun Abbas | ||
| Abstract | ||
| Despite the advantage of many developing countries of capital flows to it, which raised these flows levels of investment and encouraged economic growth which, however, these flows were double-edged sword, because it had bad side effects was high value of the currency, undermining the competitiveness of domestic exports, and may generate inflation. This rising inflation, and capital flows to the interior led to increased foreign exchange reserves. When you use these reserves to buy the local currency, the monetary base has expanded without a corresponding increase production, which has become a lot of money chasing few goods and services. | ||
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