One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows

December 1, 2008

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Format: Chicago

Daria V Zakharova. One-Size-Fits-One: Tailor-Made Fiscal Responses to Capital Flows, (USA: International Monetary Fund, 2008) accessed November 8, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper surveys policy responses in recent years to capital inflows in a diverse group of countries that are represented by the Netherlands at the IMF Executive Board. Based on the findings from cross-country empirical literature, the paper distills some guiding principles for policy responses to excessive capital inflows, depending on country-specific circumstances and with a particular focus on fiscal policy. In addition to considering the conventional macroeconomic and structural policy tools, the paper also discusses the role of microfiscal policies in affecting the size and the composition of capital inflows. While conditions in these countries have changed very recently, the policy principles remain salient.

Subject: Capital inflows, Current account balance, Current account deficits, Exchange rates, Fiscal policy

Keywords: Current account, Current account deficit, Deficit, Exchange rate, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/269
Stock No:

WPIEA2008269
ISBN:

9781451871272
ISSN:

1018-5941

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