TY - BOOK ID - 11273678 TI - The Role of Interest Rates in Business Cycle Fluctuations in Emerging Market Countries : The Case of Thailand AU - Tchakarov, Ivan. AU - Elekdag, Selim. AU - International Monetary Fund. PY - 2006 SN - 1451863705 1462344763 1451909047 9786613830692 145271584X 1283518244 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Business cycles -- Thailand -- Econometric models. KW - Electronic books. -- local. KW - Foreign exchange rates -- Thailand -- Econometric models. KW - Interest rates -- Thailand -- Econometric models. KW - Business & Economics KW - Economic Theory KW - Business cycles KW - Foreign exchange rates KW - Interest rates KW - Econometric models. KW - Money market rates KW - Rate of interest KW - Rates, Interest KW - Exchange rates KW - Fixed exchange rates KW - Flexible exchange rates KW - Floating exchange rates KW - Fluctuating exchange rates KW - Foreign exchange KW - Rates of exchange KW - Economic cycles KW - Economic fluctuations KW - Rates KW - Interest KW - Cycles KW - Accounting KW - Banks and Banking KW - Finance: General KW - Foreign Exchange KW - Public Administration KW - Public Sector Accounting and Audits KW - Interest Rates: Determination, Term Structure, and Effects KW - General Financial Markets: General (includes Measurement and Data) KW - Currency KW - Finance KW - Financial reporting, financial statements KW - Exchange rate arrangements KW - Financial statements KW - Exchange rate flexibility KW - Real interest rates KW - Emerging and frontier financial markets KW - Finance, Public KW - Financial services industry KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:11273678 AB - Emerging market countries have enjoyed an exceptionally favorable economic environment throughout 2004, 2005, and early 2006. In particular, accommodative U.S. monetary policy in recent years has helped create an environment of low interest rates in international capital markets. However, if world interest rates were to take a sudden upward course, this would lead to less hospitable financing conditions for emerging market countries. The purpose of this paper is to measure the effects of world interest rate shocks on real activity in Thailand. The analysis incorporates balance sheet related credit market frictions into the IMF’s Global Economy Model (GEM) and finds that Thailand would best minimize the adverse effects of rising world interest rates if it were to follow a flexible exchange rate regime. ER -