Capital Inflows into EMEs Since the Millennium: Risks and the Potential Impact of a Reversal

12 Pages Posted: 2 Apr 2008

See all articles by Guillermo Felices

Guillermo Felices

Bank of England - Monetary Analysis

Glenn Hoggarth

Bank of England

Vasileios Madouros

affiliation not provided to SSRN

Date Written: 2008

Abstract

Capital inflows into emerging market economies (EMEs) were at a record level in 2007 and higher than prior to the East Asian and Russian crises a decade earlier. These inflows largely reflect improvements in EMEs' economic and financial strength in recent years. But some EMEs, especially in Central and Eastern Europe, may be vulnerable to a reversal of capital flows if the global credit squeeze is prolonged or global GDP growth falls sharply. This could adversely affect both EMEs and foreign investors.

Suggested Citation

Felices, Guillermo and Hoggarth, Glenn and Madouros, Vasileios, Capital Inflows into EMEs Since the Millennium: Risks and the Potential Impact of a Reversal (2008). Bank of England Quarterly Bulletin 2008 Q1, Available at SSRN: https://ssrn.com/abstract=1115320

Guillermo Felices

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Glenn Hoggarth (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Vasileios Madouros

affiliation not provided to SSRN

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