Jump to ContentJump to Main Navigation
Taming the Tide of Capital FlowsA Policy Guide$
Users without a subscription are not able to see the full content.

Atish R. Ghosh, Jonathan D. Ostry, and Mahvash S. Qureshi

Print publication date: 2018

Print ISBN-13: 9780262037167

Published to MIT Press Scholarship Online: September 2018

DOI: 10.7551/mitpress/9780262037167.001.0001

Show Summary Details
Page of

PRINTED FROM MIT PRESS SCHOLARSHIP ONLINE (www.mitpress.universitypressscholarship.com). (c) Copyright The MIT Press, 2018. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in MITSO for personal use.date: 17 October 2019

Introduction

Introduction

Chapter:
(p.3) 1 Introduction
Source:
Taming the Tide of Capital Flows
Author(s):

Atish R. Ghosh

Jonathan D. Ostry

Mahvash S. Qureshi

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262037167.003.0001

This introductory chapter provides an overview of capital flows to emerging markets. In principle, cross-border capital flows to emerging markets have the potential to bring several benefits; in practice, however, such flows are inherently risky—though some forms may be worse than others—potentially widening macroeconomic imbalances and creating balance-sheet vulnerabilities. As such, capital flows require active policy management, which might mean mitigating their undesirable consequences using macroeconomic and macroprudential policies, or controlling their volume and composition directly using capital account restrictions, or both. By the same token, if the inflow phase is successfully managed—through the use of structural measures to steer flows toward less risky types of liabilities, and the use of macroeconomic policies, prudential measures, and capital controls for abating the cyclical component of flows and their consequences—the economy is likely to benefit from foreign capital and to remain resilient when flows recede or reverse.

Keywords:   capital flows, emerging markets, macroeconomic policies, macroprudential policies, inflow phase, structural measures, liabilities, capital controls, foreign capital

MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.