Reinhart, Carmen and Khan, Mohsin (1995): Macroeconomic Management in APEC Economies: The Response to Capital Inflows. Published in: Capital Flows in the APEC Region, (Mohsin S. Khan and Carmen M. Reinhart, eds.), IMF Occasional Paper 122, (Washington DC: International Monetary Fund, April 1995). (1995): pp. 1-17.
Download (1MB) | Preview
In recent years, there has been a surge of international capital flows to many Asian countries. During 1990-93, developing economies in Asia received a net capital inflow of $151 billion, more than double the amount recorded for the previous four years. For certain Asian countries, such as Malaysia and Thailand, these inflows have amounted to as much as 15 percent of GDP. These developments represent a major turning point from the previous decade, when, because of the debt crisis, little capital flowed to most developing countries. This change is not limited to only a few countries. The number of economies in Asia experiencing a surge in capital inflows has recently expanded; among the more recent recipients of capital inflows are India, Nepal, and Sri Lanka. Other regions, in particular, Latin America and the Middle East, have also been attracting large amounts of foreign capital. While issues pertaining to the management of international debt dominated the policy discussions of the 1980s, the design of effective economic policies for dealing with these capital inflows, and for ensuring their durability, has become a key economic policy issue in recent years.
|Item Type:||MPRA Paper|
|Original Title:||Macroeconomic Management in APEC Economies: The Response to Capital Inflows|
|Subjects:||F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General
|Depositing User:||Carmen Reinhart|
|Date Deposited:||08. Apr 2008 04:36|
|Last Modified:||14. Feb 2013 12:58|
Bercuson, Kenneth B., and Linda M. Koenig, The Recent Surge in Capital Inflows to Three ASEAN Countries: Causes and Macroeconomic Impact, Occasional Paper No. 15 (Kuala Lumpur, Malaysia: South East Asian Central Banks, 1993). Calvo, Guillermo, Leonardo Leiderman, and Carmen Reinhan, "Capital Inflows and Real Exchange Rate Appreciation in Latin America: The Role of External Factors," Staff Papers, International Monetary Fund, Vol. 40 (March 1993), pp. 108-51. ___ , "The Capital Inflows Problem: Concepts and Issues," Contemporary Economic Policy, Vol. 12 (1994), pp.54--66. ___ , "Capital Inflows to Latin America: With a Reference to the Asian Experience," in Capital Controls. Exchange Rates and Monetary Policy in the World Economy, edited by S. Edwards (fonhcoming, Cambridge: Cambridge University Press, 1995). Chuhan, Punam, Stijn Claessens, and Nlandu Mamingi, "Equity and Bond Flows to Latin America and Asia: The Role of Global and Country Factors" (unpublished; Washington: World Bank, June 19935. EI-Erian, Mohamed A., "Restoration of Access to Voluntary Capital Market Financing," Staff Papers, International Monetary Fund, Vol. 39 (March 1992), pp. 175-94 . Fernandez-Arias, Eduardo, "The New Wave of Private Capital Inflows: Push or Pull?" (unpublished; Washington: World Bank, November 1993). Goldstein, Morris, and Michael Mussa, "The Integration of World Capital Markets," IMF Working Paper 93/95 (Washington: International Fund, December 1993). Gooptu, Sudarshan, "Portfolio Investment flows to Emerging Markets," in Portfolio Investment in Developing Countries, edited by S. Claessens and S. Gooptu (Washington: World Bank, 1993). Grobar, Lis3. M.. "The Effect of Real Exchange Rate Uncertainty on LDC Manufactured Exports," Journal of Development Economics, Vol. 41 (August 1993), pp.367-76. Helpman, Elhanan, Leonardo Leiderman, and Gil Bufman, "A New Breed of Exchange Rate Bands: Chile, Israel, and Mexico," Economic Policy: A European Forum, Vol. 9 (October 1994), pp. 260-306. International Monetary Fund, Determinants and Systemic Consequences of International Capital Flows, IMF Occasional Paper No. 77 (Washington: International Monetary Fund, March 1991). ___ , Private Market Financingfor Developing Countries, World Economic and Financial Survey Series (Washington: International Monetary Fund, 1992 and 1993). ___ , International Financial Statistics (Washington: International Monetary Fund, various issues). ___ ,World Economic Outlook (Washington: International Monetary Fund, various issues). Kiguel, Miguel, and Leonardo Leiderman, "On the Consequences of Sterilized Intervention in Latin America: The Cases of Colombia and Chile" (unpublished; Washington: World Bank, 1993). Mathieson, Donald 1., and Liliana Rojas-Suarez, Liberalization of the Capital Account: Experiences and Issues, IMF Occasional Paper No. 103 (Washington: International Monetary Fund, 1993). Park, Yc., and W. Park, "Capital Movement, Real Asset Speculation, and Macroeconomic Adjustment in Korea," in Capital Controls, Exchange Rates and Monetary Policy in the World Economy, edited by S. Edwards (forthcoming, Cambridge: Cambridge University Press, 1995). Reisen, Helmut, "Southeast Asia and the 'Impossible Trinity,''' International Economic Insights, Vol. 4 (May-June 1993), pp. 21-23. Schadler, Susan, Maria Carkovic, Adam Bennett, and Robert Kahn, Recent Experiences with Surges in Capital Inflows. IMF Occasional Paper No. 108 (Washington: International Monetary Fund, 1993) .