Baltic and Icelandic Experiences of Capital Flows and Capital Flow Measures

Author/Editor: Audun Groenn ; Maria Wallin Fredholm
Publication Date: December 16, 2013
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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: The aim of this empirical study is to describe and provide analysis on the experience of managing capital flows in Iceland and the Baltic countries. During the build-up of the crisis, there were shortcomings in macroeconomic policies and in the policy mix, as well as in financial supervision in the countries covered. While the use of traditional macroeconomic and structural policies was far from exhausted, recognizing that there are no substitutes for sound macroeconomic policies, with an IMF framework on capital flows in place prior to the crisis, it might have been easier for the IMF and national policymakers to identify accelerating problems at an early stage and address them with targeted measures.
Series: Working Paper No. 13/242
Subject(s): Capital flows | Iceland | Estonia | Latvia | Lithuania | Baltics | Financial sector | Capital controls | Banks | Bank supervision

Publication Date: December 16, 2013
ISBN/ISSN: 9781475598179/1018-5941 Format: Paper
Stock No: WPIEA2013242 Pages: 32
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