Taming The Tide Of Capital Flows

Author : Atish R. Ghosh,Jonathan D. Ostry,Mahvash S. Qureshi
Publisher : MIT Press
Page : 489 pages
File Size : 54,6 Mb
Release : 2018-01-12
Category : Political Science
ISBN : 9780262037167

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Taming the Tide of Capital Flows by Atish R. Ghosh,Jonathan D. Ostry,Mahvash S. Qureshi Pdf

A comprehensive examination of policy measures intended to help emerging markets contend with large and volatile capital flows. While always episodic in nature, capital flows to emerging market economies have been especially volatile since the global financial crisis. After peaking at $680 billion in 2007, flows to emerging markets turned negative at the onset of crisis in 2008, then rebounded only to recede again during the U.S. sovereign debt downgrade in 2011. Since then, flows have continued to swing wildly, leaving emerging market policy makers wondering whether they can put in place policies during the inflow phase that will soften the blow when flows subsequently recede. This book offers the first comprehensive treatment of policy measures intended to help emerging markets contend with large and volatile capital flows. The authors, all IMF experts, explain that, in the spirit of liberalization and deregulation in the 1980s and 1990s, many emerging market governments eliminated capital inflow controls along with outflow controls. By 2012, however, capital inflow controls were again acknowledged as legitimate policy tools. Focusing on the macroeconomic and financial-stability risks associated with capital flows, the authors combine theoretical and empirical analysis to consider the interaction between monetary, exchange rate, macroprudential, and capital control policies to mitigate these risks. They examine the effectiveness of various policy tools, discuss the practical considerations and multilateral implications of their use, and provide concrete policy advice for dealing with capital inflows.

Author : J. Stiglitz,R. Gurkaynak
Publisher : Springer
Page : 202 pages
File Size : 55,6 Mb
Release : 2015-05-05
Category : Business & Economics
ISBN : 9781137427687

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Taming Capital Flows by J. Stiglitz,R. Gurkaynak Pdf

This volume contains country experiences explained by policy makers and studies by leading experts on causes and consequences of capital flows as well as policies to control these flows. It addresses portfolio flow issues central to open economies, especially emerging markets.

Author : Mr.R. G Gelos,Lucyna Gornicka,Mr.Robin Koepke,Ms.Ratna Sahay,Ms.Silvia Sgherri
Publisher : International Monetary Fund
Page : 44 pages
File Size : 44,9 Mb
Release : 2019-12-20
Category : Business & Economics
ISBN : 9781513522906

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Capital Flows at Risk: Taming the Ebbs and Flows by Mr.R. G Gelos,Lucyna Gornicka,Mr.Robin Koepke,Ms.Ratna Sahay,Ms.Silvia Sgherri Pdf

The volatility of capital flows to emerging markets continues to pose challenges to policymakers. In this paper, we propose a new framework to answer critical policy questions: What policies and policy frameworks are most effective in dampening sharp capital flow movements in response to global shocks? What are the near- versus medium-term trade-offs of different policies? We tackle these questions using a quantile regression framework to predict the entire future probability distribution of capital flows to emerging markets, based on current domestic structural characteristics, policies, and global financial conditions. This new approach allows policymakers to quantify capital flows risks and evaluate policy tools to mitigate them, thus building the foundation of a risk management framework for capital flows.

Author : Erlend Nier,Tahsin Saadi Sedik,Tomas Mondino
Publisher : International Monetary Fund
Page : 35 pages
File Size : 52,8 Mb
Release : 2014-10-27
Category : Business & Economics
ISBN : 9781498351867

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Gross Private Capital Flows to Emerging Markets by Erlend Nier,Tahsin Saadi Sedik,Tomas Mondino Pdf

This paper assesses empirically the key drivers of private capital flows to a large sample of emerging market economies in the last decade. It analyzes the effect of the global financial cycle, measured by the VIX, on capital flows and investigates the role of fundamentals and country characteristics in mitigating or amplifying its effect. Using interaction models, we find the effect of the VIX to be non-linear. For low levels of the VIX, capital flows are driven by fundamental factors. During periods of stress, the VIX becomes the dominant driver of capital flows while other determinants, with the exception of interest rate differentials, lose statistical significance. Our results also suggest that the effect of global financial conditions on gross private capital flows increases with the host country’s level of financial sector development. Finally, our results imply that countries cannot fully insulate themselves from global financial shocks, unless creating a fragmented global financial system.

Author : Diego A. Cerdeiro,Andras Komaromi
Publisher : International Monetary Fund
Page : 32 pages
File Size : 50,8 Mb
Release : 2019-09-13
Category : Business & Economics
ISBN : 9781513515090

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Financial Openness and Capital Inflows to Emerging Markets: In Search of Robust Evidence by Diego A. Cerdeiro,Andras Komaromi Pdf

We reassess the connection between capital account openness and capital flows in an empirical framework that is grounded in theory and makes use of previously unexplored variation in the data. We demonstrate how our theory-consistent regressions may overcome some ubiquitous measurement problems in the literature by relying on interaction terms between financial openness and traditional push-pull factors. Within our proposed framework, we ask: what can be said robustly about the effect of capital account restrictions on capital flows? Our results warrant against over-interpreting the existing cross-country evidence as we find very few robust relationships between capital account restrictiveness and various types of capital inflows. Countries with a higher degree of financial openness are more susceptible to some, but by no means all, push and pull factors. Overall, the results are still consistent with a complex set of tradeoffs faced by policymakers, where the ability to shield the domestic economy from volatile capital flow cycles must be weighed against the sources of exogenous risks and potential long run growth effects.

Author : GASTON. SAHAY GELOS (RATNA.)
Publisher : International Monetary Fund
Page : 2040 pages
File Size : 47,8 Mb
Release : 2023
Category : Electronic
ISBN : 9798400211263

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SHOCKS AND CAPITAL FLOWS by GASTON. SAHAY GELOS (RATNA.) Pdf

Author : Swarnali Ahmed Hannan
Publisher : International Monetary Fund
Page : 22 pages
File Size : 49,9 Mb
Release : 2018-09-28
Category : Business & Economics
ISBN : 9781484378281

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Revisiting the Determinants of Capital Flows to Emerging Markets--A Survey of the Evolving Literature by Swarnali Ahmed Hannan Pdf

This paper documents the evolution of gross and net capital flows to emerging market economies and surveys the large literature on the potential drivers. While the capital flow landscape has been shaped by the evolution of both global and country-specific factors, the relative importance of these factors has varied over time and differs depending on the type of capital flows. The findings from the survey of the literature thus underscores the importance of policies in both source and recipient countries in shaping capital flows.

Author : Mr.Harald Finger,Pablo Lopez Murphy
Publisher : International Monetary Fund
Page : 76 pages
File Size : 42,6 Mb
Release : 2019-10-22
Category : Business & Economics
ISBN : 9781513512334

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Facing the Tides by Mr.Harald Finger,Pablo Lopez Murphy Pdf

This paper looks empirically at some economic effects of volatile exchange rates and financial conditions and examines policy responses for managing such volatility. It also sheds light on some economic costs that stem from volatile capital flows and exchange rates and analyzes how countries deploy their policy toolkits in response. The data-driven analysis should contribute to ongoing reflections about how to manage volatile capital flows and exchange rates both in Asian EMEs and more broadly.

Author : John Cochrane,Kyle Palermo,John Taylor
Publisher : Hoover Press
Page : 368 pages
File Size : 42,9 Mb
Release : 2019-04-01
Category : Business & Economics
ISBN : 9780817922368

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Currencies, Capital, and Central Bank Balances by John Cochrane,Kyle Palermo,John Taylor Pdf

Drawing from their 2018 conference, the Hoover Institution brings together leading academics and monetary policy makers to share ideas about the practical issues facing central banks today. The expert contributors discuss U.S. monetary policy at individual central banks and reform of the international monetary and financial system. The discussion is broken down into seven key areas: 1) International Rules of the Monetary Game; 2) Banking, Trade and the Making of the Dominant Currency; 3) Capital Flows, the IMF's Institutional View and Alternatives; 4) Payments, Credit and Asset Prices; 5) Financial Stability, Regulations and the Balance Sheet; 6) The Future of the Central Bank Balance Sheet; and 7) Monetary Policy and Reform in Practice. With in-depth discussions of the volatility of capital flows and exchange rates, and the use of balance sheet policy by central banks, they examine relevant research developments and debate policy options.

Author : Jonathan D. Ostry,Prakash Loungani,Andrew Berg
Publisher : Columbia University Press
Page : 182 pages
File Size : 45,5 Mb
Release : 2019-01-08
Category : Business & Economics
ISBN : 9780231527613

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Confronting Inequality by Jonathan D. Ostry,Prakash Loungani,Andrew Berg Pdf

Inequality has drastically increased in many countries around the globe over the past three decades. The widening gap between the very rich and everyone else is often portrayed as an unexpected outcome or as the tradeoff we must accept to achieve economic growth. In this book, three International Monetary Fund economists show that this increase in inequality has in fact been a political choice—and explain what policies we should choose instead to achieve a more inclusive economy. Jonathan D. Ostry, Prakash Loungani, and Andrew Berg demonstrate that the extent of inequality depends on the policies governments choose—such as whether to let capital move unhindered across national boundaries, how much austerity to impose, and how much to deregulate markets. While these policies do often confer growth benefits, they have also been responsible for much of the increase in inequality. The book also shows that inequality leads to weaker economic performance and proposes alternative policies capable of delivering more inclusive growth. In addition to improving access to health care and quality education, they call for redistribution from the rich to the poor and present evidence showing that redistribution does not hurt growth. Accessible to scholars across disciplines as well as to students and policy makers, Confronting Inequality is a rigorous and empirically rich book that is crucial for a time when many fear a new Gilded Age.

Author : Anonim
Publisher : World Scientific
Page : 1044 pages
File Size : 53,5 Mb
Release : 2020-03-23
Category : Business & Economics
ISBN : 9789811200571

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Encyclopedia Of International Economics And Global Trade (In 3 Volumes) by Anonim Pdf

In an era when trade and currency wars threaten to end a long-standing period of growing trade and capital flows, the economics of international trade, investment and finance have become more important than ever. This three-volume Encyclopedia provides a comprehensive and up-to-date overview of the theory and evidence on the causes and consequences of global trade, and the theory and evidence on the economics of international trade, financial and monetary transactions.It provides, first of all, a comprehensive set of entries explaining the key theoretical concepts in international economics as well as the latest empirical and simulation techniques used in the academic literature. In addition, various entries present the history behind — and the controversies surrounding — the core current global trade and monetary institutions, from the World Trade Organization to the European Monetary Union.The three volumes also provide a serious discussion of today's central policy debates, including the impact of globalization on employment, wages and income distribution, the imposition of controls on international financial flows, the effects of tariffs and protectionist policies, fixed versus flexible exchange rate regimes, and the role of the multinational enterprise on global growth, technical change and income distribution, among many others.

Author : Williamson, John
Publisher : Peterson Institute
Page : 160 pages
File Size : 54,5 Mb
Release : 2005
Category : Electronic
ISBN : 0881325961

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Curbing the Boom-Bust Cycle: Stabilizing Capital Flows to Emerging Markets by Williamson, John Pdf

Author : Ludovico Alcorta,Neil Foster-McGregor,Bart Verspagen,Adam Szirmai
Publisher : Oxford University Press
Page : 688 pages
File Size : 42,8 Mb
Release : 2021-03-23
Category : Business & Economics
ISBN : 9780192590374

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New Perspectives on Structural Change by Ludovico Alcorta,Neil Foster-McGregor,Bart Verspagen,Adam Szirmai Pdf

New Perspectives on Structural Change is a comprehensive edited volume that outlines both the historical roots and state-of-the-art debates on the role of structural change in the process of economic development, including both orthodox and heterodox perspectives and contributions from prominent scholars in this field. The volume consists of four main sections. The first section covers the theoretical foundations of the structural change literature. The second section presents an empirical overview of the major trends of structural change, using up-to-date data sources and methods. The third section presents a broad ranging empirical analysis of the drivers of structural change. The fourth section examines how processes such as inclusive growth, poverty reduction, productive employment, the global income distribution, and environmental sustainability are affected by structural change, and how they can be influenced by policy.

Author : Robert Z. Aliber,Már Gudmundsson,Gylfi Zoega
Publisher : Springer Nature
Page : 360 pages
File Size : 47,6 Mb
Release : 2023-10-28
Category : Political Science
ISBN : 9783031264825

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Fault Lines After COVID-19 by Robert Z. Aliber,Már Gudmundsson,Gylfi Zoega Pdf

This book explores the central economic and political issues defining the modern world. With contributions from a number of world renowned economists, a range of topical debates are discussed in an accessible and practical manner. The topics discussed include the current economic and political backdrop, global economic shifts, challenges within central banking and financial integration, the international monetary and financial system, and geopolitical tensions. Particular attention is given to the transition to a low carbon economy, the perils of public debt, the post-COVID-19 recovery, and the conflict in Ukraine. This book aims to envisage the economic challenges and opportunities that will be faced in the years to come. It will be relevant to students, researchers, and policymakers interested in economic policy and the political economy. Chapter-No.17 is available open access under a Creative Commons Attribution 4.0 International License via link.springer.com.

Author : International Monetary Fund. Asia and Pacific Dept
Publisher : International Monetary Fund
Page : 28 pages
File Size : 47,9 Mb
Release : 2019-10-23
Category : Business & Economics
ISBN : 9781513516929

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Regional Economic Outlook, October 2019, Asia Pacific by International Monetary Fund. Asia and Pacific Dept Pdf

Growth in Asia is expected to moderate to 5.0 percent in 2019 and 5.1 percent in 2020 (0.4 and 0.3 percentage point lower than projected last April, respectively). A marked deceleration in merchandise trade and investment, driven by distortionary trade measures and an uncertain policy environment, is weighing on activity, particularly in the manufacturing sector.