Surging Capital Flows to Emerging Asia: Facts, Impacts, and Responses
IMF Working Papers, May 1, 2012
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Bibliographic details
- Authors: Sylwia Nowak, Sanjaya P Panth, Ravi Balakrishnan, Yiqun Wu
- Published: May 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781475503821.001
Executive summary and key findings
- Net capital flows to emerging Asia rebounded at a record pace following the global financial crisis.
- The paper documents the size and composition of the most recent surge to Asian emerging markets from a historical perspective.
- Comparative analysis across episodes of strong inflows considers developments in:
- the broader economy,
- asset prices,
- corporate variables.
- Main empirical findings:
- Little evidence of a significant build-up of imbalances during the most recent surge.
- Little evidence of resource misallocation during the most recent surge.
- Policy inference on inflow management:
- Asian countries have used regulatory measures during past surges.
- There is not strong evidence of the efficacy of these regulatory measures without supporting monetary and fiscal policies.
Data, scope, and methodology
- Geographic focus: emerging Asia.
- Comparative, historical perspective across multiple surge episodes.
- Variables examined include:
- net capital flows,
- asset prices,
- corporate variables,
- balance of payments statistics.
Policy implications and country experiences
- Countries employed regulatory measures to manage risks associated with inflows.
- Effectiveness caveat:
- Regulatory measures alone are not shown to be strongly effective without complementary monetary and fiscal policies.
- Suggests a mix of policy tools is necessary to address risks from surging capital inflows.
Publication and metadata
- Authors: Sylwia Nowak, Sanjaya P Panth, Ravi Balakrishnan, Yiqun Wu
- Publication date: May 1, 2012
- Series: Working Paper No. 2012/130
- Issue: 130
- Volume: 2012
- Pages: 28
- DOI: https://doi.org/10.5089/9781475503821.001
- Stock No: WPIEA2012130
- ISBN: 9781475503821
- ISSN: 1018-5941
Subjects and keywords
- Subjects: Balance of payments; Balance of payments statistics; Capital flows; Capital inflows; Economic and financial statistics; Financial crises; Global financial crisis of 2008-2009; Private capital flows
- Keywords: Asia; Asia and Pacific; Balance of payments statistics; Capital flows; capital inflows; central bank; ED142; equity ratio; financial crisis; Global; Global financial crisis of 2008-2009; IMF staff calculation; Indonesia; interest rate; macroprudential policy; net capital; net capital flow; portfolio debt; portfolio equity; portfolio flow; Private capital flows; Thailand; WP
Source: Surging Capital Flows to Emerging Asia: Facts, Impacts, and Responses, IMF Working Papers 2012, 130 (2012) by Sylwia Nowak, Sanjaya P Panth, Ravi Balakrishnan, and Yiqun Wu. May 1, 2012. Pages: 28. DOI: https://doi.org/10.5089/9781475503821.001