Hidden Bibliographic Details
| Other authors / contributors: | Ostry, Jonathan D., author.
Qureshi, Mahvash S., author.
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| ISBN: | 1475589298
9781475589290
1475589204
9781475589207
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| Summary: | 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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| Other form: | Print version: Ghosh, Atish R. Managing the Tide: How Do Emerging Markets Respond to Capital Flows? Washington, D.C. : International Monetary Fund,2017 9781475589207
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| Standard no.: | 10.5089/9781475589207.001
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