10 Years after the Global Financial Crisis: What Have We Learnt About International Capital Flows?

2017 ◽  
Vol 08 (03) ◽  
pp. 1750017 ◽  
Author(s):  
Stephanie Guichard
Keyword(s):  
Financial Crisis ◽  
Capital Flows ◽  
Global Financial Crisis ◽  
International Capital Flows ◽  
Economic Research ◽  
Financial Instability ◽  
International Capital ◽  
New Findings ◽  
The Global Financial Crisis

Making the most of international capital flows by allowing countries to reap their benefits while reducing associated risks has always been a challenge and has led to considerable economic research over the past 30 years. This challenge became even more acute following the Global Financial Crisis, as new concerns emerged related to the complexity of global financial relations, their role in shock transmission as well as how to protect countries from financial instability. Against this background, recent research has focussed on understanding better the implications of financial globalization for economic stability and the design of policies. This literature review takes stock of these recent developments including the discussion on the risks associated with corporate foreign indebtedness, the role of the global financial cycle in driving financial instability, new findings on the real impact of international capital flows and ongoing debates on the role of capital controls.

scholarly journals The Macroprudential Role of International Reserves

2016 ◽  
Vol 106 (5) ◽  
pp. 570-573 ◽  
Author(s):  
Olivier Jeanne
Keyword(s):  
Financial Crisis ◽  
Capital Flows ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Capital Controls ◽  
International Reserves ◽  
International Banking ◽  
Flow Management ◽  
The Global Financial Crisis

There has been a lot of interest since the global financial crisis in policies allowing emerging market economies to smooth the effects of the global financial cycle. Although the literature has focused mostly on capital controls emerging market governments have relied mostly on international reserves management. This paper discusses the role of reserves in capital flow management based on a simple welfare-based model of capital flows with international banking frictions.

scholarly journals Capital account regulation as part of the macroeconomic regime: comparing Brazil in the 1990s and 2000s

2018 ◽  
Vol 15 (3) ◽  
pp. 313-334 ◽  
Author(s):  
Barbara Fritz ◽  
Daniela Magalhães Prates
Keyword(s):  
Comparative Analysis ◽  
Financial Crisis ◽  
Financial Market ◽  
Capital Flows ◽  
Global Financial Crisis ◽  
Capital Account ◽  
International Capital ◽  
Inflation Stabilization ◽  
Account Regulation ◽  
The Global Financial Crisis

Capital account regulation (CAR) has experienced profound reconsideration since the global financial crisis. This new debate focuses on the macroeconomic gains of regulating international capital flows in terms of reducing external and financial vulnerability, but it does not consider relevant aspects relating to the context in which these regulations are implemented. In this paper, we undertake a comparative analysis of similar types of CAR applied in Brazil during the 1990s and 2000s. Based on this analysis, we conclude that for the design of CAR, which is relevant for its effectiveness, institutional features of both the financial market and the macroeconomic regime, shaped by macroeconomic constraints, are relevant. For the case of Brazil, we conclude that, contrary to the 2000s, the strong preference given to inflation stabilization in the 1990s, together with high external vulnerability, strongly limited the CAR's design of this period.

scholarly journals Capital flows to emerging economies during and after the global financial crisis in 2008

2013 ◽  
Vol 3 (1) ◽  
pp. 71
Author(s):  
Dr.Sc. Vesna Georgieva Svrtinov ◽  
Dr.Sc. Riste Temjanovski
Keyword(s):  
Financial Crisis ◽  
Emerging Economies ◽  
Capital Flows ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Regional Distribution ◽  
Capital Inflows ◽  
International Capital ◽  
Policy Responses ◽  
The Global Financial Crisis

This paper analyses dynamics of various types of capital flows to emerging economies during and after the global financial crisis. The first part discusses dynamics of various types of international capital flows during the global financial crisis. The second part focuses on the regional distribution of capital inflows to emerging markets economies. The third part raises the issue of the changed pattern of foreign direct investment, observed during and after the global crisis. The fourth part discusses possible policy responses for dealing with volatile capital flows to emerging market economies.

International Capital Flows

2021 ◽  
Author(s):  
Yanshuo Chen ◽  
Galina Hale
Keyword(s):  
Capital Flows ◽  
Global Financial Crisis ◽  
Structural Characteristics ◽  
International Capital Flows ◽  
International Capital ◽  
Policy Changes ◽  
Early 21St Century ◽  
Boom And Bust ◽  
The Global Financial Crisis ◽  
Boom And Bust Cycles

International capital flows have challenged economists’ models for decades. They exhibit a number of patterns that standard economic theories have struggled to explain. Over time, global capital flows go through boom and bust cycles, sudden stops, and unprecedented bonanzas. Determinants of capital flows include “pull factors,” recipient countries’ economic and structural characteristics, and “push factors” or “global factors,” which mostly depend on the global financial cycle and U.S. monetary policy. The relative importance of global factors has increased since the early 2000s. The rise in international capital flows that has accompanied the wave of globalization in the early 21st century has helped to deliver crucial capital resources that facilitated development of many economies and helped transmit technologies across borders. On the flip side, international capital flows also increased transmission of financial shocks and policy changes across countries, most prominently experienced during the global financial crisis of 2008–2009. On balance, is it beneficial for small open economies to allow for free capital flows? Mainstream economists’ and policymakers’ answer to this question has evolved from an unequivocal “yes” to a much more nuanced view.

scholarly journals Understanding Financial Instability: Minsky Versus the Austrians

2016 ◽  
Vol 22 (1) ◽  
Author(s):  
Ludwig Van Den Hauwe
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Critical Evaluation ◽  
Central Planning ◽  
Financial Instability ◽  
Conceptual Level ◽  
Theoretical Frameworks ◽  
Historical Experience ◽  
The Global Financial Crisis ◽  
Cross Fertilization

AbstractAlthough Minsky’s interpretation of Keynes’s macroeconomics and essential message clashes with authoritative alternative interpretations, it has become increasingly influential during the years following the Global Financial Crisis, even in mainstream circles. This paper offers a critical evaluation of Minsky’s Financial Instability Hypothesis from the perspective of the alternative Austro-Wicksellian paradigm. Although some of the similarities and/or analogies between Minsky’s approach and that of the Austrian School suggest a more than merely superficial affinity between the two theoretical frameworks and although some scope for cross-fertilization between both approaches can be found, both theoretically and empirically, at a fundamental conceptual level both theories remain incompatible and difficult if not impossible to reconcile, in particular in terms of fundamental causality and in terms of policy conclusions and prescriptions. Despite the fact that Minsky’s policy conclusions are multifaceted and somewhat eclectic, they manifest a lack of familiarity with the conclusions of the Austrian analysis of the problems of central planning by Big Players such as Big Bank and Big Government. Both approaches also offer contrasting interpretations of the historical experience of the Global Financial Crisis.

scholarly journals Conceptualising the Role of International Capital Flows for Housing Markets

2016 ◽  
Vol 51 (3) ◽  
pp. 146-154
Author(s):  
Michael Richter ◽  
Johannes-Gabriel Werner
Keyword(s):  
Capital Flows ◽  
Housing Markets ◽  
International Capital Flows ◽  
International Capital
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