Recent Experiences in Managing Capital Inflows—Cross-Cutting Themes and Possible Policy Framework
Policy Papers, February 14, 2011
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Bibliographic details
- Published: February 14, 2011
- Series: Policy Papers
Summary of the paper
- Publication date: February 14, 2011
- Core observation: Emerging markets (EMs) are experiencing a surge in capital inflows, lifting asset prices and growth prospects.
- Key tension: While inflows are typically beneficial for receiving countries, inflow surges can carry macroeconomic and financial stability risks.
- Purpose: Reviews recent experience of EMs in dealing with capital inflows and suggests a possible framework for IMF policy advice on the spectrum of measures available to policymakers to manage inflows.
Framework and spectrum of measures reviewed
- Policy instruments considered:
- Macroeconomic policies
- Prudential measures
- Capital controls
- Intended use: To inform IMF staff policy advice to all Fund members with open capital accounts.
- Implementation guidance: Illustrative applications of the framework suggest it may be appropriate for several countries, based on their current circumstances, to consider prudential measures or capital controls in response to capital inflows.
Illustrative applications and implications
- Findings from illustrative applications:
- For several countries, given their current circumstances, prudential measures or capital controls could be appropriate responses to capital inflows.
- Policy objective alignment:
- The suggested framework aims to sharpen Fund surveillance, preserve evenhandedness, and foster greater global policy coordination.
Broader effort and supplementary work referenced
- The paper is part of a broader effort that includes development of:
- “Global rules of the game” on macroprudential policies
- “Global rules of the game” on capital account liberalization
- “Global rules of the game” on reserve adequacy
- Preparation of spillover reports assessing spillovers from the five systemic economies
- Role of supplement: The Supplement to this paper indicates the broader effort and will inform the current and broader framework being developed.
Metadata and related notes
- Subject tags as given: Capital flows, Capital inflows, Cross country analysis, Emerging markets, Fiscal policy
- Access point referenced on the page: IMF eLibrary offers over 25,000 IMF publications in multiple formats.
Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/recent-experiences-in-managing-capital-inflows-cross-cutting-themes-and-possible-policy-pp4542 (accessed 9/18/2026)