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Dealing with capital inflows: Are there any lessons?

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Author Info
Reinhart, Carmen
Dunnaway, Steve

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Abstract

We have now witnessed more than half a decade of relatively heavy capital inflows to a large group of highly heterogeneous developing countries and economies in transition in Asia, Eastern Europe, the Former Soviet Union, Latin America, and parts of Africa and the Middle East--we have also witnessed the broad range of policy responses that these inflows have elicited. In light of this, the aim of this paper is threefold: first, we take stock of which countries implemented which policies; second, we attempt to assess to what extent the policies achieved their intended objectives; lastly, we draw lessons about which policies appear to have been the most successful tool in coping with surging capital inflows, with emphasis on the "policy mix" and how they interact.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 13764.

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Date of creation: 1996
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Handle: RePEc:pra:mprapa:13764

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Related research
Keywords: capital inflows capital controls reserve requirements exchange rate policy sterilized intervention;

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Find related papers by JEL classification:
F3 - International Economics - - International Finance
E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Grobar, Lisa Morris, 1993. "The effect of real exchange rate uncertainty on LDC manufactured exports," Journal of Development Economics, Elsevier, vol. 41(2), pages 367-376, August. [Downloadable!] (restricted)
  2. Philippe BACCHETTA & Eric VAN WINCOOP, 1994. "Net Capital Flows under Exchange Rate and Price Volatility," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9414, Université de Lausanne, Faculté des HEC, DEEP.
  3. Adam Bennett & María Vicenta Carkovic S. & Susan Schadler & Robert Brandon Kahn, 1993. "Recent Experiences with Surges in Capital Inflows," IMF Occasional Papers 108, International Monetary Fund.
  4. Alberto Carrasquilla, 1995. "Exchange Rate Bands and Shifts in the Stabilization Policy Regime: Issues Suggested by the Experience of Colombia," IMF Working Papers 95/42, International Monetary Fund.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Clara Garcia, 2004. "Capital Inflows, Policy Responses, and Their Ill Consequences: Thailand, Malaysia, and Indonesia in the Decade Before the Crises," Working Papers wp81, Political Economy Research Institute, University of Massachusetts at Amherst. [Downloadable!]
  2. M S Mohanty & Philip Turner, 2005. "Intervention: what are the domestic consequences?," BIS Papers chapters, in: Bank for International Settlements (ed.), Foreign exchange market intervention in emerging markets: motives, techniques and implications, volume 24, pages 56-81 Bank for International Settlements. [Downloadable!]
  3. Reinhart, Carmen & Montiel, Peter, 1999. "Do capital controls influence the volume and composition of capital flows? Evidence from the 1990s," MPRA Paper 13710, University Library of Munich, Germany. [Downloadable!]
  4. Reinhart, Carmen & Montiel, Peter, 2001. "The Dynamics of Capital Movements to Emerging Economies During the 1990s," MPRA Paper 7577, University Library of Munich, Germany. [Downloadable!]
  5. Reinhart, Carmen & Calvo, Guillermo, 1999. "The Consequences and Management of Capital Inflows: Lessons for Sub-Saharan Africa," MPRA Paper 7901, University Library of Munich, Germany. [Downloadable!]
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