View metadata

dc.titleCapital Flows and Macroeconomic Policies in Emerging Economies
dc.contributor.authorAgosin, Manuel R.
dc.contributor.orgunitRegional Operations Department
dc.coverageDominican Republic
dc.coverageCentral America
dc.date.available2011-07-01T00:00:00
dc.date.issue2006-01-01T00:00:00
dc.description.abstractThis study deals with the appropriate macroeconomic policies toward international capital flows. It argues that countries in a position to integrate themselves into world capital markets should develop specific policies to deal with capital flows. This paper first shows that foreign capital inflows are not only larger and more volatile but also that their effects on key macroeconomic variables are much stronger in emerging developing countries than in developed countries. Next, the two opposing paradigms regarding capital flows are discussed in detail. Then, a simple classical open economy macroeconomic model is presented as a benchmark against which to analyze the effects of unfettered capital flows. According to this model (which is the basis of conventional advice), there is nothing that policy makers need to do about capital flows, but to follow sound domestic macroeconomic policies. But once the key assumptions of the model are dropped, the effects of capital flows that one can observe in reality begin to emerge. Appropriate conclusions can then be derived.
dc.format.extent28
dc.identifier.doihttp://dx.doi.org/10.18235/0008734
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Capital-Flows-and-Macroeconomic-Policies-in-Emerging-Economies.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFiscal Policy
dc.subjectFinancial Crisis and Structural Adjustement
dc.subjectMonetary Policy
dc.subjectInvestment
dc.subjectFinancial Market
dc.subject.keywordsNFP
dc.typeTechnical Notes
idb.identifier.pubnumberTechnical Notes
Return to Publication