Capital Flow Bonanzas and Monetary Policy in Emerging Europe: Responses to the Global Financial Crisis

Jean-Pierre Allegret () and Audrey Allegret-Sallenave ()
Additional contact information
Jean-Pierre Allegret: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique
Audrey Allegret-Sallenave: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, LEAD - Laboratoire d'Économie Appliquée au Développement - UTLN - Université de Toulon

Post-Print from HAL

Abstract: We analyse the conduct of monetary policy in some new member states of the EU and some EU candidates over the period 2000–13. We investigate why monetary policy has been ineffective in insulating domestic liquidity from capital inflows and why some countries from emerging Europe have been especially constrained in responding to the crisis. Our contribution is threefold. First, we show that countries with fixed exchange rate regimes have encountered significant obstacles to conducting monetary policy to cope with large capital inflows and credit booms during the period preceding the financial crisis. Second, we illuminate how pegged countries have been more constrained in responding to the global financial crisis than non-pegged economies. Third, countries with high currency mismatch and financial vulnerabilities seem unable to adopt monetary policy dedicated only to macroeconomic stabilisation

Keywords: capital flows; emerging European countries; financial crisis; monetary policy (search for similar items in EconPapers)
Date: 2015
Note: View the original document on HAL open archive server: https://hal.parisnanterre.fr/hal-01385959
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published in Post-Communist Economies, 2015, 27 (4), pp.429- 447

Downloads: (external link)
https://hal.parisnanterre.fr/hal-01385959/document (application/pdf)

Related works:
Working Paper: Capital flow bonanzas and monetary policy in emerging Europe: responses to the global financial crisis (2015)
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:hal:journl:hal-01385959

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().