One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows
AbstractThis paper surveys policy responses in recent years to capital inflows in a diverse group of countries that are represented by the Netherlands at the IMF Executive Board. Based on the findings from cross-country empirical literature, the paper distills some guiding principles for policy responses to excessive capital inflows, depending on country-specific circumstances and with a particular focus on fiscal policy. In addition to considering the conventional macroeconomic and structural policy tools, the paper also discusses the role of microfiscal policies in affecting the size and the composition of capital inflows. While conditions in these countries have changed very recently, the policy principles remain salient.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 08/269.
Date of creation: 01 Dec 2008
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-03 (All new papers)
- NEP-MAC-2009-01-03 (Macroeconomics)
- NEP-OPM-2009-01-03 (Open Economy Macroeconomic)
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