Large Capital Flows: A Survey of the Causes, Consequences, and Policy Responses

Alejandro Lopez Mejia

No 1999/017, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews the causes, consequences, and policy responses to large capital flows in several emerging markets. It opens by studying recent patterns of capital flows, and then discusses the causes of capital flows. Emphasis is given to the reasons behind the capital inflow episode in the 1990s, the major reversals, and the volatility observed in these flows. The paper goes on to examine the consequences of capital inflows and the pros and cons of alternative policy responses. It concludes with policy lessons derived from country experiences.

Keywords: WP; capital flow; capital control; net capital; stabilization program; balance of payments; financial system; Capital Flows; Crises; Policy Responses; Survey; current account; open economy; capitalization rate; capital net; adverse selection; mobility consist; Capital inflows; Real exchange rates; Capital controls; Private capital flows; Asia and Pacific; Global; Eastern Europe; Western Hemisphere; Middle East (search for similar items in EconPapers)
Pages: 54
Date: 1999-02-01
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Citations: View citations in EconPapers (44)

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