Managing Capital Flow Volatility

5 Pages Posted: 6 Oct 2014

See all articles by Eswar S. Prasad

Eswar S. Prasad

Cornell University - Dyson School of Applied Economics and Management; Cornell University - Department of Economics; Brookings Institution; NBER; IZA Institute of Labor Economics

Date Written: January 2014


This note discusses the challenges that emerging markets face in managing capital flow volatility. The note lays out a conceptual framework for evaluating deviations from a first-best world in which capital flows have desirable characteristics, and then categorises the reasons that might explain these deviations.

Full publication: Long-Term Finance: Can Emerging Capital Markets Help?

Keywords: Capital flow volatility, policy spillovers, monetary policy

Suggested Citation

Prasad, Eswar S., Managing Capital Flow Volatility (January 2014). BIS Paper No. 75a. Available at SSRN:

Eswar S. Prasad (Contact Author)

Cornell University - Dyson School of Applied Economics and Management ( email )

440 Warren Hall
Ithaca, NY 14853
United States


Cornell University - Department of Economics ( email )

414 Uris Hall
Ithaca, NY 14853-7601
United States

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics