Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links
In the wake of the recent global financial crisis, emerging markets have seen a significantly higher degree of volatility in their capital flows. At the onset, all countries experienced sudden stops and increases in risk premia. Following this init...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2010/06/12464135/dealing-challenges-capital-inflows-context-macrofinancial-links http://hdl.handle.net/10986/10177 |
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okr-10986-10177 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
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ADVANCED COUNTRIES ADVANCED ECONOMIES AGGREGATE DEMAND ASSET CLASSES ASSET PRICE ASSET PRICES ASSETS BALANCE SHEET BALANCE SHEETS BANK CREDIT BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK PORTFOLIOS BANK PROFITABILITY BANK REGULATION BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BOND BOND MARKET BONDS CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL RATIOS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKING CERTIFICATES OF DEPOSIT COLLATERAL COMMERCIAL BANKS COMMERCIAL PAPER COMPETITIVENESS CREDIBILITY CREDIT BOOMS CREDIT EXPANSION CURRENT ACCOUNT CURRENT ACCOUNT IMBALANCES DEBT DEMAND GROWTH DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS DOMESTIC ECONOMY DOMESTIC INTEREST RATES ECONOMIC CRISIS ECONOMIC REVIEW EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM CONDITIONS EQUITY ISSUANCE EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE LEVEL EXCHANGE RATE PEG EXCHANGE RATE REGIME EXCHANGE RATE TARGETS EXPENDITURES EXPORT GROWTH EXPOSURE EXPOSURES EXTERNAL BORROWING FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL INNOVATION FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL POLICY FIXED EXCHANGE RATE FIXED EXCHANGE RATE REGIME FOREIGN CURRENCY FOREIGN CURRENCY BORROWING FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN INTEREST FOREIGN INTEREST RATES GLOBAL LIQUIDITY GLOBAL TRADE GLOBALIZATION GROWTH VOLATILITY HOLDINGS IMPORT INCOME INFLATION INFLATIONARY PRESSURES INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL LENDING INTERNATIONAL SETTLEMENTS INVESTMENT RISK LEVERAGE LIABILITY LIABILITY SIDE LIBERALIZATION LIBERALIZATIONS LIQUIDITY LIQUIDITY CONDITIONS LOAN LOCAL MARKETS LOSS OF COMPETITIVENESS MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMIC OBJECTIVES MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MARKET INTEREST MARKET INTEREST RATE MARKET LIQUIDITY MARKET PARTICIPANTS MATURITY MATURITY MISMATCHES MONETARY POLICY MONETARY TRANSMISSION MONEY SUPPLY MULTILATERAL TRADE NOMINAL EXCHANGE RATE OPEN MARKET OPEN MARKET OPERATIONS OUTPUT OUTPUT LOSSES POLICY OPTIONS POLICY RESPONSES POVERTY REDUCTION PRICE INFLATION PRIVATE CAPITAL PRIVATE SECTOR PRODUCTIVE INVESTMENTS PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS RAPID EXPORT GROWTH REAL ESTATE REAL ESTATE LENDING REGULATORS REGULATORY FRAMEWORKS REGULATORY STRUCTURES RESERVE RESERVE MONEY RESERVES RETURN RETURNS RISK PREMIA RISK TAKING RISK TOLERANCE RISK-TAKING CAPACITY SAVINGS STOCK MARKET SURCHARGES SYSTEMIC RISK TIGHT MONETARY POLICY TRADE FLOWS TRADE POLICY TRADING TRADING PARTNERS TRANQUIL PERIODS TRANSACTION TRANSPARENCY UNCERTAINTY UPWARD PRESSURE WORLD ECONOMY |
| spellingShingle |
ADVANCED COUNTRIES ADVANCED ECONOMIES AGGREGATE DEMAND ASSET CLASSES ASSET PRICE ASSET PRICES ASSETS BALANCE SHEET BALANCE SHEETS BANK CREDIT BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK PORTFOLIOS BANK PROFITABILITY BANK REGULATION BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BOND BOND MARKET BONDS CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL RATIOS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKING CERTIFICATES OF DEPOSIT COLLATERAL COMMERCIAL BANKS COMMERCIAL PAPER COMPETITIVENESS CREDIBILITY CREDIT BOOMS CREDIT EXPANSION CURRENT ACCOUNT CURRENT ACCOUNT IMBALANCES DEBT DEMAND GROWTH DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS DOMESTIC ECONOMY DOMESTIC INTEREST RATES ECONOMIC CRISIS ECONOMIC REVIEW EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM CONDITIONS EQUITY ISSUANCE EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE LEVEL EXCHANGE RATE PEG EXCHANGE RATE REGIME EXCHANGE RATE TARGETS EXPENDITURES EXPORT GROWTH EXPOSURE EXPOSURES EXTERNAL BORROWING FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL INNOVATION FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL POLICY FIXED EXCHANGE RATE FIXED EXCHANGE RATE REGIME FOREIGN CURRENCY FOREIGN CURRENCY BORROWING FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN INTEREST FOREIGN INTEREST RATES GLOBAL LIQUIDITY GLOBAL TRADE GLOBALIZATION GROWTH VOLATILITY HOLDINGS IMPORT INCOME INFLATION INFLATIONARY PRESSURES INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL LENDING INTERNATIONAL SETTLEMENTS INVESTMENT RISK LEVERAGE LIABILITY LIABILITY SIDE LIBERALIZATION LIBERALIZATIONS LIQUIDITY LIQUIDITY CONDITIONS LOAN LOCAL MARKETS LOSS OF COMPETITIVENESS MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMIC OBJECTIVES MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MARKET INTEREST MARKET INTEREST RATE MARKET LIQUIDITY MARKET PARTICIPANTS MATURITY MATURITY MISMATCHES MONETARY POLICY MONETARY TRANSMISSION MONEY SUPPLY MULTILATERAL TRADE NOMINAL EXCHANGE RATE OPEN MARKET OPEN MARKET OPERATIONS OUTPUT OUTPUT LOSSES POLICY OPTIONS POLICY RESPONSES POVERTY REDUCTION PRICE INFLATION PRIVATE CAPITAL PRIVATE SECTOR PRODUCTIVE INVESTMENTS PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS RAPID EXPORT GROWTH REAL ESTATE REAL ESTATE LENDING REGULATORS REGULATORY FRAMEWORKS REGULATORY STRUCTURES RESERVE RESERVE MONEY RESERVES RETURN RETURNS RISK PREMIA RISK TAKING RISK TOLERANCE RISK-TAKING CAPACITY SAVINGS STOCK MARKET SURCHARGES SYSTEMIC RISK TIGHT MONETARY POLICY TRADE FLOWS TRADE POLICY TRADING TRADING PARTNERS TRANQUIL PERIODS TRANSACTION TRANSPARENCY UNCERTAINTY UPWARD PRESSURE WORLD ECONOMY Ghosh, Swati R Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links |
| relation |
Economic Premise; No. 19 |
| description |
In the wake of the recent global
financial crisis, emerging markets have seen a significantly
higher degree of volatility in their capital flows. At the
onset, all countries experienced sudden stops and increases
in risk premia. Following this initial period of
uncertainty, financial markets began to differentiate
between the countries, and while most developing regions
have regained access to both, debt and equity issuance, the
pace of recovery of capital inflows has been particularly
remarkable for some countries. Given the likelihood that the
prevailing low interest rates in the developed world will
remain for some time to come, and given the prospects of
faster growth in emerging markets, it is likely that some
emerging markets will experience significant surges in
capital flows in the near future. This note examines
potential policy responses to maintain macroeconomic and
financial sector stability in the face of increased capital inflows. |
| format |
Publications & Research :: Brief |
| author |
Ghosh, Swati R |
| author_facet |
Ghosh, Swati R |
| author_sort |
Ghosh, Swati R |
| title |
Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links |
| title_short |
Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links |
| title_full |
Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links |
| title_fullStr |
Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links |
| title_full_unstemmed |
Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links |
| title_sort |
dealing with the challenges of capital inflows in the context of macrofinancial links |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2010/06/12464135/dealing-challenges-capital-inflows-context-macrofinancial-links http://hdl.handle.net/10986/10177 |
| _version_ |
1764412135138394112 |
| spelling |
okr-10986-101772021-04-23T14:02:49Z Dealing with the Challenges of Capital Inflows in the Context of Macrofinancial Links Ghosh, Swati R ADVANCED COUNTRIES ADVANCED ECONOMIES AGGREGATE DEMAND ASSET CLASSES ASSET PRICE ASSET PRICES ASSETS BALANCE SHEET BALANCE SHEETS BANK CREDIT BANK FOR INTERNATIONAL SETTLEMENTS BANK LENDING BANK PORTFOLIOS BANK PROFITABILITY BANK REGULATION BANKING SECTOR BANKING SYSTEM BANKING SYSTEMS BOND BOND MARKET BONDS CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MOBILITY CAPITAL RATIOS CAPITAL REQUIREMENTS CENTRAL BANK CENTRAL BANKING CERTIFICATES OF DEPOSIT COLLATERAL COMMERCIAL BANKS COMMERCIAL PAPER COMPETITIVENESS CREDIBILITY CREDIT BOOMS CREDIT EXPANSION CURRENT ACCOUNT CURRENT ACCOUNT IMBALANCES DEBT DEMAND GROWTH DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANKS DOMESTIC ECONOMY DOMESTIC INTEREST RATES ECONOMIC CRISIS ECONOMIC REVIEW EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE EQUILIBRIUM EQUILIBRIUM CONDITIONS EQUITY ISSUANCE EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE LEVEL EXCHANGE RATE PEG EXCHANGE RATE REGIME EXCHANGE RATE TARGETS EXPENDITURES EXPORT GROWTH EXPOSURE EXPOSURES EXTERNAL BORROWING FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL INNOVATION FINANCIAL INSTABILITY FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REFORM FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL POLICY FIXED EXCHANGE RATE FIXED EXCHANGE RATE REGIME FOREIGN CURRENCY FOREIGN CURRENCY BORROWING FOREIGN EXCHANGE FOREIGN EXCHANGE MARKET FOREIGN INTEREST FOREIGN INTEREST RATES GLOBAL LIQUIDITY GLOBAL TRADE GLOBALIZATION GROWTH VOLATILITY HOLDINGS IMPORT INCOME INFLATION INFLATIONARY PRESSURES INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL LENDING INTERNATIONAL SETTLEMENTS INVESTMENT RISK LEVERAGE LIABILITY LIABILITY SIDE LIBERALIZATION LIBERALIZATIONS LIQUIDITY LIQUIDITY CONDITIONS LOAN LOCAL MARKETS LOSS OF COMPETITIVENESS MACROECONOMIC CONDITIONS MACROECONOMIC MANAGEMENT MACROECONOMIC OBJECTIVES MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MARKET INTEREST MARKET INTEREST RATE MARKET LIQUIDITY MARKET PARTICIPANTS MATURITY MATURITY MISMATCHES MONETARY POLICY MONETARY TRANSMISSION MONEY SUPPLY MULTILATERAL TRADE NOMINAL EXCHANGE RATE OPEN MARKET OPEN MARKET OPERATIONS OUTPUT OUTPUT LOSSES POLICY OPTIONS POLICY RESPONSES POVERTY REDUCTION PRICE INFLATION PRIVATE CAPITAL PRIVATE SECTOR PRODUCTIVE INVESTMENTS PRUDENTIAL REGULATION PRUDENTIAL REGULATIONS RAPID EXPORT GROWTH REAL ESTATE REAL ESTATE LENDING REGULATORS REGULATORY FRAMEWORKS REGULATORY STRUCTURES RESERVE RESERVE MONEY RESERVES RETURN RETURNS RISK PREMIA RISK TAKING RISK TOLERANCE RISK-TAKING CAPACITY SAVINGS STOCK MARKET SURCHARGES SYSTEMIC RISK TIGHT MONETARY POLICY TRADE FLOWS TRADE POLICY TRADING TRADING PARTNERS TRANQUIL PERIODS TRANSACTION TRANSPARENCY UNCERTAINTY UPWARD PRESSURE WORLD ECONOMY In the wake of the recent global financial crisis, emerging markets have seen a significantly higher degree of volatility in their capital flows. At the onset, all countries experienced sudden stops and increases in risk premia. Following this initial period of uncertainty, financial markets began to differentiate between the countries, and while most developing regions have regained access to both, debt and equity issuance, the pace of recovery of capital inflows has been particularly remarkable for some countries. Given the likelihood that the prevailing low interest rates in the developed world will remain for some time to come, and given the prospects of faster growth in emerging markets, it is likely that some emerging markets will experience significant surges in capital flows in the near future. This note examines potential policy responses to maintain macroeconomic and financial sector stability in the face of increased capital inflows. 2012-08-13T10:38:37Z 2012-08-13T10:38:37Z 2010-06 http://documents.worldbank.org/curated/en/2010/06/12464135/dealing-challenges-capital-inflows-context-macrofinancial-links http://hdl.handle.net/10986/10177 English Economic Premise; No. 19 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |