{
  "title": "Capital Account Liberalization, Capital Flow Patterns, and Policy Responses in the EU's New Member States",
  "publication": "IMF Working Papers, November 1, 2005",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/capital-account-liberalization-capital-flow-patterns-and-policy-responses-in-the-eu-s-new-18604",
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  "summary": "This paper discusses the experience of the EU's eight new member countries (EU8) between 1995 and 2003 when the bulk of capital account liberalization took place, focusing on interest-rate-sensitive portfolio flows and financial flows.",
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    {
      "heading": "Summary",
      "content": "- Author: Zsofia Arvai\n- Date: November 1, 2005\n- Scope: Experience of the EU's eight new member countries (EU8) between 1995 and 2003 during the bulk of capital account liberalization.\n- Focus: Interest-rate-sensitive portfolio flows and financial flows; lessons from capital flow patterns to draw policy conclusions."
    },
    {
      "heading": "Key findings",
      "content": "- Two distinct groups emerged among the EU8 in terms of the speed of capital account liberalization: rapid liberalizers and cautious liberalizers.\n- The speed of disinflation and the level of public debt were major determinants of the size of interest-rate-sensitive portfolio inflows.\n- Monetary and exchange rate policies were the main instruments used to react to large interest-rate-sensitive inflows.\n- Fiscal tightening was seldom used as a direct reaction to inflows."
    },
    {
      "heading": "Themes and analysis",
      "content": "- Capital account liberalization period: 1995–2003.\n- Flow types emphasized: interest-rate-sensitive portfolio flows and financial flows.\n- Determinants of inflows:\n  - Speed of disinflation.\n  - Level of public debt.\n- Policy responses observed:\n  - Predominant use of monetary policy tools.\n  - Use of exchange rate policy measures.\n  - Limited direct recourse to fiscal tightening in response to inflows.\n\n---\n\n Content in this bundle\n\n- wp05213\n  - wp05213 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp05213 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/capital-account-liberalization-capital-flow-patterns-and-policy-responses-in-the-eu-s-new-18604"
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    "Authors: Zsofia Arvai",
    "Published: November 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451862324.001",
    "Author: Zsofia Arvai",
    "Date: November 1, 2005",
    "Scope: Experience of the EU's eight new member countries (EU8) between 1995 and 2003 during the bulk of capital account liberalization.",
    "Focus: Interest-rate-sensitive portfolio flows and financial flows; lessons from capital flow patterns to draw policy conclusions.",
    "Two distinct groups emerged among the EU8 in terms of the speed of capital account liberalization: rapid liberalizers and cautious liberalizers.",
    "The speed of disinflation and the level of public debt were major determinants of the size of interest-rate-sensitive portfolio inflows.",
    "Monetary and exchange rate policies were the main instruments used to react to large interest-rate-sensitive inflows.",
    "Fiscal tightening was seldom used as a direct reaction to inflows.",
    "Capital account liberalization period: 1995–2003.",
    "Flow types emphasized: interest-rate-sensitive portfolio flows and financial flows.",
    "Determinants of inflows:",
    "Policy responses observed:",
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