Managing Capital Flow Volatility
5 Pages Posted: 6 Oct 2014
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
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