---
title: Capital flows and exchange rates: A quantitative assessment of the dilemma hypothesis
url: https://www.ml-quant.com/papers/repec/boe-boeewp-023263/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:boe:boeewp:023263
source_url: https://econpapers.repec.org/RePEc:boe:boeewp:023263
featured: 2026-09-25
citations: unknown
topic: Macro-Finance & Rates
---


# Capital flows and exchange rates: A quantitative assessment of the dilemma hypothesis

In response to US monetary tightening, financial channels dominate for small open economies: credit spreads widen and output falls despite currency depreciation.

- Source: https://econpapers.repec.org/RePEc:boe:boeewp:023263
- Identifier: RePEc:boe:boeewp:023263
- Released: 2026-09-14
- First featured: Quant Letter No. 132 (2026-09-25): https://www.ml-quant.com/issues/2026-09-25/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: Ambrogio Cesa-Bianchi, Andrea Ferrero, Shangshang Li

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