%0 Unpublished work %T Exchange Rates and Monetary Spillovers %+ Département d'économie (Sciences Po) (ECON) %+ Tepper School of Business %+ Princeton University %A Plantin, Guillaume %A Shin, Hyun Song %8 2016-01-01 %D 2016 %K Currency appreciation %K Capital flows %K Global games %Z Humanities and Social Sciences/Economics and FinancePreprints, Working Papers, ... %X When does the combination of flexible exchange rates and inflation-targeting monetary policy guarantee insulation from global financial conditions? We examine a dynamic global game model of international investment flows where, for some combination of parameters, the unique equilibrium exhibits the observed empirical feature of prolonged episodes of capital inflows and appreciation of the domestic currency, followed by abrupt reversals where capital outflows go hand-in-hand with currency depreciation, a domestic bond market crash, and inflationary pressure. %G English %2 https://sciencespo.hal.science/hal-03393218/document %2 https://sciencespo.hal.science/hal-03393218/file/2016-plantin-xrates-and-spillovers.pdf %L hal-03393218 %U https://sciencespo.hal.science/hal-03393218 %~ SHS %~ SCIENCESPO %~ CNRS %~ AO-ECONOMIE %~ USPC %~ ECON-SCPO %~ SCPO_OA %~ SCPO-REPEC