## The Multilateral Aspects of Policies Affecting Capital Flows - Background Paper

_Policy Papers, October 24, 2011_

## Source details

**Canonical URL:** [The Multilateral Aspects of Policies Affecting Capital Flows - Background Paper](https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/the-multilateral-aspects-of-policies-affecting-capital-flows-background-paper-pp4614)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2016/12/31/the-multilateral-aspects-of-policies-affecting-capital-flows-background-paper-pp4614/index.md)
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## Bibliographic details
- Published: October 24, 2011
- Series: Policy Papers

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### Overview
- Publication date: October 24, 2011
- Format noted: Chicago citation provided as "The Multilateral Aspects of Policies Affecting Capital Flows - Background Paper, (USA: International Monetary Fund, 0) accessed 9/19/2026"
- eLibrary offering: "over 25,000 IMF publications in multiple formats"

### Summary findings
- The case studies document the regulatory and supervisory dimension of episodes during the recent crisis involving capital flows that generated systemic stress.
- Source country regulation and supervision is the main focus, although recipient country policies also were important in some cases and are thus covered as well.
- Three of the case studies are motivated by systemic stress that arose from flows between advanced economies:
  - Strong demand by foreign investors for U.S. financial products helped drive gross flows between the United States and other countries, especially Europe.
  - This demand induced the U.S. financial sector to develop products that transformed their risky assets into highly-rated securities.
  - Large European banks came to depend on short-term liquidity provided from the U.S., creating two-way capital flows that formed a complex web among markets and institutions, some regulated and some not.
- Case studies prepared include:
  - European banks and U.S. money market mutual funds (MMMFs)
  - German banks and U.S. mortgage-backed securities (MBSs)
  - The near failure of the American International Group (AIG), highlighting complex and systemically cross-border linkages with other global institutions and markets

### Thematic focus and subject tags
- Background papers
- Bank supervision
- Banking sector
- Capital flows
- Capital inflows
- Cross country analysis
- Emerging markets
- Europe
- Insurance supervision

### Publication metadata (as presented)
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- Volume:
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*The Multilateral Aspects of Policies Affecting Capital Flows - Background Paper, (USA: International Monetary Fund, 0) accessed 9/19/2026 — https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/the-multilateral-aspects-of-policies-affecting-capital-flows-background-paper-pp4614*

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## Content in this bundle

- **_102111**
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_Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/the-multilateral-aspects-of-policies-affecting-capital-flows-background-paper-pp4614_