Capital Inflows and Policy Responses in the AsEAN Region

Author/Editor:

Linda M. Koenig

Publication Date:

April 1, 1996

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 reviews the experience of four ASEAN countries in dealing with an unprecedently strong influx of foreign capital in the late 1980s and early 1990s. While there was some increase in inflation associated with the inflows, it was relatively minor, and real exchange rates did not appreciate. Countries responded in the first instance by using open market operations for sterilized intervention. Subsequently, the fiscal stance was tightened. There was reluctance to allow nominal currency appreciation and, with one exception, controls on capital inflows were avoided.

Series:

Working Paper No. 96/25

Subject(s):

English

Publication Date:

April 1, 1996

ISBN/ISSN:

9781451844214/1018-5941

Stock No:

WPIEA0251996

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

50

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