Responses to Volatile Capital Flows: Controls, Asset Liability Management and Architecture
Michael Dooley ()
Journal of Emerging Market Finance, 2002, vol. 1, issue 1, 99-124
The economic costs of financial crises in emerging markets have been sub stantial. In this article we evaluate government policies design to mitigate these costs in the context of an insurance model of crises. Our conclusions are unconventional in that policies proposed would not be appropriate for industrial countries. First, capital controls can be welfare improving. Second, the scale of financial intermediation by emerging market govern ments should be strictly limited to minimise capital gains and losses that can generate crises. Finally, debt management by emerging market govern ments should consider the costs of alternative debt structures in the event of default.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:1:y:2002:i:1:p:99-124
Access Statistics for this article
More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications ().