Tools for managing financial-stability risks from capital inflows

Ostry, Jonathan D.; Ghosh, Atish R.; Chamon, Marcos; Qureshi, Mahvash S.

doi:10.1016/j.jinteco.2012.02.002

Cited by 298 publications

(204 citation statements)

References 27 publications

Supporting

Mentioning

189

Contrasting

Unclassified

Order By: Relevance

“…For instance, consistent with the findings of Ostry et al (2012), controls on capital inflows are associated with significantly lower banking system external liabilities (Table 5, col.…”

Section: Financial Vulnerabilitiessupporting

confidence: 84%

See 1 more Smart Citation

Exchange Rate Management and Crisis Susceptibility: A Reassessment

Ghosh¹,

Ostry²,

Qureshi³

2015

IMF Econ Rev

118

View full text Add to dashboard Cite

This paper revisits the bipolar prescription for exchange rate regime choice and asks two questions: are the poles of hard pegs and pure floats still safer than the middle? And where to draw the line between safe floats and risky intermediate regimes? Our findings, based on a sample of 50 EMEs over 1980-2011, show that macroeconomic and financial vulnerabilities are significantly greater under less flexible intermediate regimes-including hard pegs-as compared to floats. While not especially susceptible to banking or currency crises, hard pegs are significantly more prone to growth collapses, suggesting that the security of the hard end of the prescription is largely illusory. Intermediate regimes as a class are the most susceptible to crises, but "managed floats"-a subclass within such regimes-behave much more like pure floats, with significantly lower risks and fewer crises. "Managed floating," however, is a nebulous concept; a characterization of more crisis prone regimes suggests no simple dividing line between safe floats and risky intermediate regimes. JEL Classification Numbers: F31, F33

show abstract

“…For instance, consistent with the findings of Ostry et al (2012), controls on capital inflows are associated with significantly lower banking system external liabilities (Table 5, col.…”

Section: Financial Vulnerabilitiessupporting

confidence: 84%

“…20 Likewise, restrictions on FX-denominated lending naturally reduce the proportion of such loans in total bank lending (Rosenberg and Tirpak, 2008;Ostry et al 2012), while open FX-limits have a stronger impact on foreign borrowing by the banking system (Tables 5 and 6, cols.…”

Section: Financial Vulnerabilitiesmentioning

confidence: 99%

Exchange Rate Management and Crisis Susceptibility: A Reassessment

Ghosh¹,

Ostry²,

Qureshi³

2015

IMF Econ Rev

118

View full text Add to dashboard Cite

show abstract

“…This first analysis of this issue came with the work by IMF researchers (Ostry et al 2012). They showed that countries that had CARs before the global financial crisis were able to mitigate the contraction of GDP during the crisis.…”

Section: The Case For and Effectiveness Of Capital Account Regulationsmentioning

confidence: 99%

“…14 The G-20 adopted, during its 2011 Summit, a set of 'coherent conclusions for the management of capital flows' (G-20 2011), but the most important multilateral effort to rethink the role of these regulations was that undertaken by the IMF in 2011 and 2012, proposing first what it called first a 'possible policy framework ' (IMF 2011a' (IMF , 2011b and later an 'institutional view' (IMF 2012a(IMF , 2012b. This exercise was backed by significant research by IMF staff (see, in particular, Ostry et al 2010Ostry et al , 2011Ostry et al , 2012. As a result of this exercise, the IMF has recognized that capital flows carry risks and that, under certain circumstances, capital flows should be regulated to moderate both surges and sudden stops in external financing.…”

Section: Recent Global Policy Debatesmentioning

confidence: 99%

Capital Account Liberalization and Management

Ocampo¹

2017

Resetting the International Monetary (Non)System

View full text Add to dashboard Cite

This paper reviews the history and controversies associated with capital account management. It first looks at the transition from the acceptance at the Bretton Woods conference of capital account regulations as a normal policy instrument to the liberalization of the capital account, first in developed countries and later in developing countries. This is followed by an analysis of the risks of capital account liberalization, particularly for emerging and developing countries, and the role and experience of capital account regulations as a complementary instrument of counter-cyclical macroeconomic policy, and as a financial stability tool -as part of the family of 'macroprudential regulations'.Keywords: capital account regulations, capital account management, capital account liberalization JEL classification: F02, F33, F36.Acknowledgements: This is a chapter of a book on the international monetary system prepared for the United Nations University's World Institute for Development Economics Research (UNU-WIDER), which develops on the theme of the WIDER Lecture delivered by the author on this issue (Ocampo 2011). I am extremely grateful to Bilge Erten, Kevin Gallagher, Stephany GriffithJones, Shari Spiegel and Joseph E. Stiglitz, with whom I have written on the topics of this chapter. I draw in part from our common work. I also thank Andrés Lizcano for his research assistance.

show abstract

“…In particular, the ambiguous effects of capital flows have led to different views and policy suggestions for emerging economies (Bertaut et al, 2012;Ostry et al, 2012;Forbes et al, 2015;Korinek and Sandri, 2016). Some economists argue that the recent financial downturn has had a large impact on capital flow patterns (Fratzscher, 2012).…”

Section: Introductionmentioning

confidence: 99%

Capital flows and GDP in emerging economies and the role of global spillovers

Beckmann

Czudaj

2017

Journal of Economic Behavior & Organization

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. positively and negatively linked to GDP. We also find that the effect of net portfolio flows is even more positive compared to net FDI flows for emerging economies. Finally, we provide evidence that the importance of global factors increases in times of crises. Terms of use: Documents in

show abstract

Tools for managing financial-stability risks from capital inflows

Cited by 298 publications

References 27 publications

Exchange Rate Management and Crisis Susceptibility: A Reassessment

Exchange Rate Management and Crisis Susceptibility: A Reassessment

Capital Account Liberalization and Management

Capital flows and GDP in emerging economies and the role of global spillovers

Contact Info

Product

Resources

About