Capital Inflows and Balance of Payments Pressures - Tailoring Policy Responses in Emerging Market Economies
( IMF Policy Discussion Papers )
Publication series ： IMF Policy Discussion Papers
Author： Bikas Joshi Manuela Goretti Ms. Uma Ramakrishnan Mr. Alun H. Thomas Mr. Atish R. Ghosh Mr. Juan Zalduendo
Publisher： INTERNATIONAL MONETARY FUND
Publication year： 2008
E-ISBN: 9781455243587
P-ISBN(Paperback): 9781451945997
Subject： F831.7 International financial flows
Keyword： Capital flows,Capital inflows,Developing countries
Language： ENG
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Description
Although capital inflows are generally beneficial to recipient countries, they also pose a challenge for the conduct of economic policy. This paper proposes a conceptual taxonomy to guide the design of policy responses in the face of capital flows. We explore how responses to capital surges should be differentiated based on the source of balance of payments pressures. We also examine whether the policy choices in emerging market countries conform to the taxonomy's predictions and find some correspondence, especially during periods of high global liquidity.