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Rethinking Capital Flows for Emerging East Asia

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  • Grenville, Stephen

    (Asian Development Bank Institute)

Abstract

Since the 1980s, emerging countries have been urged to welcome foreign capital inflows. The result has often been a pattern of surges, where excessive inflows were followed by damaging “sudden stops” and reversals. What is needed is a strategy that makes use of the potential benefits of capital “flowing downhill” (that would require these countries to run current account deficits) while at the same time protecting them from both the excessive inflows and the reversals.

Suggested Citation

  • Grenville, Stephen, 2012. "Rethinking Capital Flows for Emerging East Asia," ADBI Working Papers 362, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0362
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    References listed on IDEAS

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    More about this item

    Keywords

    asian financial crisis; east asia; financial markets; capital flows; current account;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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