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Managing the tide : how do emerging markets respond to capital flows? /

This paper examines whether-and how-emerging market economies (EMEs) respond to capital flows to mitigate their untoward consequences. Based on a sample of about 50 EMEs over 2005Q1-2013Q4, we find that EME policy makers respond proactively to capital inflows by using a combination of policy tools:...

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Detalles Bibliográficos
Clasificación:Libro Electrónico
Autores principales: Ghosh, Atish R. (Autor), Ostry, Jonathan D. (Autor), Qureshi, Mahvash S. (Autor)
Formato: Electrónico eBook
Idioma:Inglés
Publicado: [Washington, District of Columbia] : International Monetary Fund, 2017.
Colección:IMF working paper ; WP/17/69.
Temas:
Acceso en línea:Texto completo

MARC

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520 3 |a This paper examines whether-and how-emerging market economies (EMEs) respond to capital flows to mitigate their untoward consequences. Based on a sample of about 50 EMEs over 2005Q1-2013Q4, we find that EME policy makers respond proactively to capital inflows by using a combination of policy tools: central banks raise the policy interest rate to address economic overheating concerns; intervene in the foreign exchange market to resist currency appreciation pressures; tighten macroprudential measures to dampen credit growth; and deploy capital inflow controls in the face of competitiveness and financial-stability concerns. Contrary to conventional policy advice to EMEs, we find no evidence of counter-cyclical fiscal policy in the face of capital inflows. Overall, policies are more likely to respond, and used in combination, during inflow surges than in more normal times. 
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700 1 |a Qureshi, Mahvash S.,  |e author. 
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