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Taming Volatile Capital Flows in Emerging Economies

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  • Stephen Grenville

Abstract

Just about all economists agree that international trade in goods and services is beneficial and should be unrestricted. There is much less unanimity, however, on the benefits of international capital flows. The volatility and 'sudden stops' experienced over recent decades, especially in emerging economies, have provoked some rethinking. It is argued here that this re-think has much further to go before the analytical discussion fits the reality of capital-flow behaviour and policy comes to grips with the challenge of living with capricious capital flows. Flows to East Asian emerging economies illustrate the argument.

Suggested Citation

  • Stephen Grenville, 2012. "Taming Volatile Capital Flows in Emerging Economies," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 19(2), pages 107-122.
    • Handle: RePEc:acb:agenda:v:19:y:2012:i:2:p:107-122
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    File URL: http://press-files.anu.edu.au/downloads/press/p208901/pdf/ch104.pdf
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    References listed on IDEAS

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    6. Robert N. McCauley, 2010. "Managing Recent Hot Money Inflows in Asia," Chapters, in: Masahiro Kawai & Mario B. Lamberte (ed.), Managing Capital Flows, chapter 5, Edward Elgar Publishing.
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