Capital Inflows and Real Exchange Rate Appreciation in Latin America
Author : Guillermo A. Calvo
Publisher :
Page : 70 pages
File Size : 21,65 MB
Release : 1992
Category : Capital movements
ISBN :
Capital Flows at Risk: Taming the Ebbs and Flows
Author : Mr.R. G Gelos
Publisher : International Monetary Fund
Page : 44 pages
File Size : 45,94 MB
Release : 2019-12-20
Category : Business & Economics
ISBN : 1513522906
Book Description
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.
The New Wave of Private Capital Inflows
Author : Eduardo Fernandez-Arias
Publisher : World Bank Publications
Page : 48 pages
File Size : 22,12 MB
Release : 1994
Category : Capital movements
ISBN :
Book Description
Capital Inflows and Real Exchange Rate Appreciation in Latin America
Author : Mr.Guillermo Calvo
Publisher : International Monetary Fund
Page : 66 pages
File Size : 48,71 MB
Release : 1992-08-01
Category : Business & Economics
ISBN : 1451964455
Book Description
The characteristics of recent capital inflows into Latin America are discussed. It is argued that these inflows are partly explained by conditions outside the region, like recession in the United States and lower international interest rates. This suggests the possibility that a reversal of those conditions may lead to a future capital outflow, increasing the macroeconomic vulnerability of Latin American economies. Policy options are argued to be limited.
Capital Flows in the APEC Region
Author : Mr.Mohsin S. Khan
Publisher : International Monetary Fund
Page : 88 pages
File Size : 29,38 MB
Release : 1995-10-06
Category : Business & Economics
ISBN : 9781557754660
Book Description
The developing economies of the Asia Pacific Economic Cooperation (APEC) have been the recipients of a considerable volume of capital inflows in the 1990s. Given the increased integration of capital markets, it is not surprising that monetary control became more difficult for many developing APEC economies. Formulating an appropriate policy response has naturally been important. The three papers that make up this Occasional Paper each examine different aspects of these issues.
Surges
Author : Mr.Atish R. Ghosh
Publisher : International Monetary Fund
Page : 43 pages
File Size : 23,59 MB
Release : 2012-01-01
Category : Business & Economics
ISBN : 1463942303
Book Description
This paper examines why surges in capital flows to emerging market economies (EMEs) occur, and what determines the allocation of capital across countries during such surge episodes. We use two different methodologies to identify surges in EMEs over 1980-2009, differentiating between those mainly caused by changes in the country's external liabilities (reflecting the investment decisions of foreigners), and those caused by changes in its assets (reflecting the decisions of residents). Global factors-including US interest rates and risk aversion¡-are key to determining whether a surge will occur, but domestic factors such as the country's external financing needs (as implied by an intertemporal optimizing model of the current account) and structural characteristics also matter, which explains why not all EMEs experience surges. Conditional on a surge occurring, moreover, the magnitude of the capital inflow depends largely on domestic factors including the country's external financing needs, and the exchange rate regime. Finally, while similar factors explain asset- and liability-driven surges, the latter are more sensitive to global factors and contagion.
Central Banking in Latin America
Author : Mr.Luis Ignacio Jácome
Publisher : International Monetary Fund
Page : 57 pages
File Size : 45,54 MB
Release : 2015-03-17
Category : Business & Economics
ISBN : 1484303180
Book Description
This paper provides a brief historical journey of central banking in Latin America to shed light on the debate about monetary policy in the post-global financial crisis period. The paper distinguishes three periods in Latin America’s central bank history: the early years, when central banks endorsed the gold standard and coped with the collapse of this monetary system; a second period, in which central banks turned into development banks under the aegis of governments at the expense of increasing inflation; and the “golden years,” when central banks succeeded in preserving price stability in an environment of political independence. The paper concludes by cautioning against overburdening central banks in Latin America with multiple mandates as this could end up undermining their hard-won monetary policy credibility.
Managing Capital Flows
Author : Masahiro Kawai
Publisher : Edward Elgar Publishing
Page : 465 pages
File Size : 42,96 MB
Release : 2010-01-01
Category : Business & Economics
ISBN : 184980687X
Book Description
Managing Capital Flows provides analyses that can help policymakers develop a framework for managing capital flows that is consistent with prudent macroeconomic and financial sector stability. While capital inflows can provide emerging market economies with invaluable benefits in pursuing economic development and growth, they can also pose serious policy challenges for macroeconomic management and financial sector supervision. The expert contributors cover a wide range of issues related to managing capital flows and analyze the experience of emerging Asian economies in dealing with surges in capital inflows. They also discuss possible policy measures to manage capital flows while remaining consistent with the goals of macroeconomic and financial sector stability. Building on this analysis, the book presents options for workable national policies and regional policy cooperation, particularly in exchange rate management. Containing chapters that bring in international experiences relevant to Asia and other emerging market economies, this insightful book will appeal to policymakers in governments and financial institutions, as well as public and private finance experts. It will also be of great interest to advanced students and academic researchers in finance.
Policy Responses to Capital Flows in Emerging Markets
Author : Mahmood Pradhan
Publisher : International Monetary Fund
Page : 45 pages
File Size : 15,54 MB
Release : 2011-04-20
Category : Business & Economics
ISBN : 1463935129
Book Description
Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and to further debate. These papers are generally brief and written in nontechnical language, and so are aimed at a broad audience interested in economic policy issues. This Web-only series replaced Staff Position Notes in January 2011.
Gross Private Capital Flows to Emerging Markets
Author : Erlend Nier
Publisher : International Monetary Fund
Page : 35 pages
File Size : 26,71 MB
Release : 2014-10-27
Category : Business & Economics
ISBN : 1498352928
Book Description
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.
