scholarly journals Capital Flow Management

2012 ◽  
Vol 102 (3) ◽  
pp. 203-206 ◽  
Author(s):  
Olivier Jeanne
Keyword(s):  
Emerging Markets ◽  
Developing Economies ◽  
Capital Flow ◽  
Capital Inflows ◽  
Capital Account ◽  
Flow Management ◽  
Theoretical Literature ◽  
International Coordination

There is a wide variety in the capital account policies of emerging markets and developing economies. Some countries, such as Brazil, have recently experimented with prudential controls on capital inflows, whereas others, such as China, have continued to maintain tight controls. This paper reviews the recent theoretical literature explaining the motivations behind capital account policies, and whether there is a case for international coordination in this area.

Capital-Flow Volatility and Economic Openness: A Wavelet Approach

2020 ◽  
Vol 66 (4) ◽  
pp. 291-318
Author(s):  
Mihai Mutascu ◽  
Scott W. Hegerty
Keyword(s):  
Emerging Markets ◽  
Developing Economies ◽  
Trade Openness ◽  
Price Volatility ◽  
Developed Countries ◽  
Capital Flow ◽  
Developed Economies ◽  
Oil Price Volatility ◽  
Real Gdp

The paper analyzes the interaction between capital-flow volatility and trade openness in five developed economies and four emerging markets by applying wavelet analysis over the period from 1990Q1 to 2017Q1. The main findings reveal that, in the medium term, capital-flow volatility drives trade openness in emerging markets and developing economies. Special attention should be paid to developed countries during the 2008 economic crisis, when trade exposure is shown to have had significant effects on capital-flow volatility. In the long term, the direction of comovement is rather idiosyncratic in our set of emerging markets and developing countries. Moreover, in both groups of countries, the intensity and persistence of relationships are very sensitive to the volatility of real GDP and secondary to geopolitical risk and oil-price volatility.

scholarly journals The Chair’s Summing Up Independent Evaluation Office - IMF advice on Capital Flows Executive Board Meeting 20/93 September 18, 2020

Policy Papers ◽  
2020 ◽  
Vol 20 (41) ◽  
Author(s):  
Keyword(s):  
Capital Flows ◽  
Technical Assistance ◽  
Developing Economies ◽  
Capital Flow ◽  
Policy Framework ◽  
Capital Account ◽  
Major Advance ◽  
Capital Account Liberalization ◽  
Management Measures ◽  
Independent Evaluation

Executive Directors welcomed the report of the Independent Evaluation Office (IEO) on IMF Advice on Capital Flows. Directors appreciated the high quality of the report, and its thematic and background country studies. Directors welcomed the finding that the adoption of the Institutional View (IV), along with the development of other frameworks and additional tools, had represented a major advance in the Fund’s policy framework to provide systematic advice to member countries on the management of capital flows and capital account liberalization. Directors also noted the conclusion that, in its application, the Fund had generally followed the IV and other policy frameworks to ensure that the advice was consistent, tailored to country circumstances, and evenhanded across countries. Directors welcomed that capital flow management measures (CFMs) have generally not been used to substitute for warranted policy adjustments. Directors also welcomed the finding that most authorities broadly support the IV’s sequenced framework to capital account liberalization and appreciated the Fund’s specific advice in many cases, especially in the context of technical assistance. More recently, faced with the abrupt capital flow reversals during the COVID-19 crisis, Directors noted that emerging markets and developing economies generally followed a multi-pronged approach broadly consistent with the IV framework and made relatively little use of CFMs.

The Drivers of Capital Flows in Emerging Markets Post Global Financial Crisis

2017 ◽  
Vol 08 (02) ◽  
pp. 1750009 ◽  
Author(s):  
Swarnali Ahmed Hannan
Keyword(s):  
Emerging Markets ◽  
Capital Flows ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Capital Flow ◽  
Global Risk ◽  
Bond Yields ◽  
Lower Growth ◽  
The Us ◽  
Growth Prospects

The paper studies the determinants of various instruments of capital flows, using 34 emerging markets and developing economies over 2009Q3–2015Q4. The regressions are extended to focus on quarters with flows that are one standard deviation above/below mean. Overall, the capital flow slowdown in recent years is due to lower growth prospects of recipient countries and worsening global risk sentiment. However, there are considerable differences across instruments. The sensitivity of some flows, towards push/pull factors, increases during periods of extreme capital flows. The gap between the US long- and short-term maturity bond yields — insignificant during normal times — is important during high capital flow episodes.

CAPITAL FLOW WAVES AND ECONOMIC GROWTH: EVIDENCE FROM ADVANCED AND DEVELOPING ECONOMIES

2019 ◽  
pp. 1-34
Author(s):  
SU WAH HLAING ◽  
MAKOTO KAKINAKA
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Capital Mobility ◽  
Developing Economies ◽  
Capital Flow ◽  
Capital Inflows ◽  
Policy Implications ◽  
Macroeconomic Conditions ◽  
Macroprudential Policies ◽  
Efficient Resource

There have been growing concerns that volatile international capital flows could harm macroeconomic conditions in a country, although capital mobility generally promotes efficient resource allocation. To understand the roles of gross capital inflows and outflows, this study examines the effects of extreme capital flow waves on economic growth in 164 developing and advanced economies. The main results show clear differences between them. Growth in advanced countries is insensitive to extreme capital flow waves, but for developing countries, sudden stops and retrenchments (sudden decreases in capital inflows and outflows) hurt growth, while surges (sudden increases in capital inflows) are positively associated with growth. The analysis indicates that developing economies are vulnerable to sharp decreases in both capital inflows and capital outflows. Our findings have policy implications for financial regulators, particularly in developing countries, indicating that they should pay more attention to macroprudential policies related to capital flow management aimed at stabilizing capital flow movements.

Recent Experiences in Managing Capital Inflows—Cross-Cutting Themes and Possible Policy Framework—Supplementary Information

Policy Papers ◽  
2011 ◽  
Vol 2011 (11) ◽  
Author(s):  
Keyword(s):  
Capital Flows ◽  
Capital Flow ◽  
Capital Inflows ◽  
Policy Framework ◽  
Supplementary Information ◽  
Supply Side ◽  
Flow Management ◽  
Management Measures ◽  
Supply Side Factors

This supplement provides further information on some of the issues covered in Recent Experiences in Managing Capital Inflows—Cross-Cutting Themes and Possible Policy Framework that have been highlighted in staff’s informal discussions with Directors. These include the role of supply-side factors behind the surge in capital flows and the nature of the framework pertaining to the use of capital flow management measures (CFMs).

Macroeconomic Shocks and Unconventional Monetary Policy

2019 ◽  
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Emerging Markets ◽  
Financial Stability ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Spillover Effects ◽  
Macroeconomic Shocks ◽  
Monetary Policies ◽  
Developed Economies

Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and, finally developed economies’ implementation of unconventional monetary policies. Especially the implementation of quantitative easing (QE), ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. One of the regions most profoundly affected by the crisis was Asia due to its high dependence on international trade and international financial linkages. The objective of this book is to explain how macroeconomic shocks stemming from the global financial crisis and recent unconventional monetary policies in developed economies have affected macroeconomic and financial stability in emerging markets, with a particular focus on Asia. In particular, the book covers the following thematic areas: (i) the spillover effects of macroeconomic shocks on financial markets and flows in emerging economies; (ii) the impact of recent macroeconomic shocks on real economies in emerging markets; and (iii) key challenges for the monetary, exchange rate, trade, and macroprudential policies of developing economies, especially Asian economies, and suggestions and recommendations to increase resiliency against external shocks.

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