Capital Flows at Risk: Taming the Ebbs and Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Flows at Risk: Taming the Ebbs and Flows write by Mr.R. G Gelos. This book was released on 2019-12-20. Capital Flows at Risk: Taming the Ebbs and Flows available in PDF, EPUB and Kindle. 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.
Capital Flows at Risk
Capital Flows at Risk - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Capital Flows at Risk write by Gaston Gelos. This book was released on 2021. Capital Flows at Risk available in PDF, EPUB and Kindle. The volatility of capital flows to emerging markets continues to pose challenges to policymakers. In this paper, we propose a new quantile regression framework to predict the entire future probability distribution of capital flows to emerging markets, based on changes in global financial conditions, domestic structural characteristics, and policies. The approach allows us to differentiate between short- and medium-term effects. We find that FX- and macroprudential interventions are effective in mitigating downside risks to portfolio flows stemming from adverse global shocks, while tightening of capital controls in response appears to be counterproductive. Good institutional frameworks are not able to shield countries from the increased volatility of portfolio flows in the immediate aftermath of global shocks. However, they do contribute to a more rapid bounce-back of foreign flows over the medium term.
Taming the Tide of Capital Flows
Taming the Tide of Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Taming the Tide of Capital Flows write by Atish R. Ghosh. This book was released on 2018-01-12. Taming the Tide of Capital Flows available in PDF, EPUB and Kindle. 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.
Taming Capital Flows
Taming Capital Flows - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Taming Capital Flows write by J. Stiglitz. This book was released on 2015-05-05. Taming Capital Flows available in PDF, EPUB and Kindle. 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.
The Volatility of Capital Flows in Emerging Markets
The Volatility of Capital Flows in Emerging Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Volatility of Capital Flows in Emerging Markets write by Maria Sole Pagliari. This book was released on 2017-03-07. The Volatility of Capital Flows in Emerging Markets available in PDF, EPUB and Kindle. Capital flow volatility is a concern for macroeconomic and financial stability. Nonetheless, literature is scarce in this topic. Our paper sheds light on this issue in two dimensions. First, using quarterly data for 65 countries over the period 1970Q1-2016Q1, we construct three measures of volatility, for total capital flows and key instruments. Second, we perform panel regressions to understand the determinants of volatility. The measures show that the volatility of all instruments is prone to bouts, rising sharply during global shocks like the taper tantrum episode. Capital flow volatility thus remains a challenge for policy makers. The regression results suggest that push factors can be more important than pull factors in explaining volatility, illustrating that the characteristics of volatility can be different from those of the flows levels.
