Capital Flows, Credit Cycles and Macroprudential Policy

6 Pages Posted: 5 Oct 2016

See all articles by Yusuf Soner Baskaya

Yusuf Soner Baskaya

Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Julian di Giovanni

Centre for Economic Policy Research (CEPR)

Sebnem Kalemli-Ozcan

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Koc University, Graduate School of Business

José-Luis Peydró

Imperial College London; Centre for Economic Policy Research (CEPR); Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Mehmet Ulu

Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Date Written: September 2016

Abstract

In the wake of the Global Financial Crisis (GFC), a considerable number of countries have adopted major changes in their policy frameworks geared towards enhancing financial stability. It is now conventional wisdom that part of the surge in capital flows into emerging market economies (EMEs) was in part a side effect from unconventional policies such as quantitative easing and negative interest rates, which generated a huge amount of global liquidity, as well as low interest rates in advanced economies. These inflows, mostly in the form of portfolio inflows, have in turn led to risks associated with a massive domestic credit expansion in EMEs. These phenomena have raised concerns over potential external imbalances, as well as maturity and currency mismatches between assets and liabilities in the household and corporate sectors.

Full publication: Macroprudential Policy

Suggested Citation

Baskaya, Yusuf Soner and di Giovanni, Julian and Kalemli-Ozcan, Sebnem and Peydro, Jose-Luis and Ulu, Mehmet, Capital Flows, Credit Cycles and Macroprudential Policy (September 2016). BIS Paper No. 86j, Available at SSRN: https://ssrn.com/abstract=2844247

Yusuf Soner Baskaya (Contact Author)

Government of the Republic of Turkey - Central Bank of the Republic of Turkey ( email )

Anafartalar Mah. İstiklal Cad. No:10
Ulus, Ankara 06050
Turkey

Julian Di Giovanni

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Sebnem Kalemli-Ozcan

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Koc University, Graduate School of Business ( email )

Rumelifeneri Yolu
34450 Sar?yer
Istanbul, 34450
Turkey

Jose-Luis Peydro

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences ( email )

Ramon Trias Fargas 25-27
Barcelona, Barcelona 08005
Spain
(+34) 93 542 1756 (Phone)
(+34) 93 542 1746 (Fax)

HOME PAGE: http://https://sites.google.com/site/joseluispeydroswebpage/

Mehmet Ulu

Government of the Republic of Turkey - Central Bank of the Republic of Turkey

Istiklal Cad. 10 Ulus
06100 Ankara, Ankara 06050
Turkey

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