The Bernanke-Blinder closed economy model suggests that macroprudential policies aimed at bank lending will affect the domestic long-term interest rate. In an open economy, domestic shocks to long-term rates are likely to influence capital flows and the exchange rate. Currency movements feed...

In this session, we shall have presentations on capital flows, on credit cycles and on policies in an oil-exporting economy. By way of introduction to how these topics are linked, I would like to underline the key role of the exchange rate and explain what Bruno and Shin (2015) have called the...