Net flows to emerging markets’ funds and the U.S. monetary policy after the subprime crisis
Henri Audigé ()
No 2014-23, EconomiX Working Papers from University of Paris Nanterre, EconomiX
In this paper, we examine the determinants of global investors’ net flows to investment bond funds dedicated to emerging economies and analyze the effects of the U.S. expansionary monetary policy on these flows from 2010 to 2013. We particularly focus on investors’ behavior vis-à-vis emerging markets local and foreign currency bond funds. Our main findings confirm the significant external impact of U.S. monetary policy decisions – and especially tapering announcements – on net flows to foreign currency bond funds. Our results highlight the higher sensitivity of EMEs foreign currency bond markets to U.S monetary shocks and suggest possible transmission effects from developed to emerging bond markets.
Keywords: Emerging market economies; capital flows; bond markets; shocks transmission; institutional investors; unconventional U.S. monetary policy. (search for similar items in EconPapers)
JEL-codes: E44 G23 F32 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2014-23
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