Capital Mobility and Monetary Policy: An Overview

Fuentes, Miguel and Raddatz, Claudio and Reinhart, Carmen (2015): Capital Mobility and Monetary Policy: An Overview. Published in: Journal Economía Chilena , Vol. 18, No. 1 (April 2015): pp. 50-67.

Abstract

While the global economic environment has changed considerably from end-2011 to the present for advanced and emerging economies alike, the themes and policy issues addressed by these papers share a timeless dimension. Collectively, the studies that comprise this volume deal with various aspects of the causes, consequences, and policy challenges associated with the repeated boom-bust cycles that have characterized market economies throughout most of their history. The papers have a decided open-economy focus and connect the prosperity-crisis-depression cycle to international capital flows and their impact on domestic and external indebtedness, currency fluctuations, and the banking sector; their connection to global factors, such as international interest rates, commodity prices and crises or turbulence outside the national borders is explored. While the analysis is tilted towards emerging markets—particularly in Latin America, the relevance of these topics for mature economies has been made plain by the Global Financial Crisis.

• Item Type: MPRA Paper
• Language: English
• Keywords: capital flows, contagion, capital controls, credit booms
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E50 - General; F - International Economics > F3 - International Finance; F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance

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