Capital Flows, Crises, and Externalities
Anton Korinek
Chapter 5 in The Global Macro Economy and Finance, 2012, pp 98-117 from Palgrave Macmillan
Abstract:
Abstract Emerging economies frequently experience episodes of large capital inflows. In the mid-2000s for example, global financial markets were flush with liquidity. Many emerging economies had better short-term growth prospects than advanced countries and became an attractive destination for global investors. Large capital inflows, or ‘capital flow bonanzas’ in the terminology of Reinhart and Reinhart (2008), pushed up real exchange rates and inflated asset prices in the countries affected. The ensuing rise in purchasing power and in the value of domestic assets that could serve as collateral fueled a large increase in indebtedness.
Keywords: Exchange Rate; Real Exchange Rate; Capital Flow; Social Planner; Capital Control (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-137-03425-0_6
Ordering information: This item can be ordered from
http://www.palgrave.com/9781137034250
DOI: 10.1057/9781137034250_6
Access Statistics for this chapter
More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().