IDEAS home Printed from https://ideas.repec.org/h/pal/intecp/978-1-137-52958-9_11.html
   My bibliography  Save this book chapter

Managing the Exchange Rate in the Face of Volatile Capital Flows

In: Contemporary Issues in Macroeconomics

Author

Listed:
  • Jonathan D. Ostry

    (International Monetary Fund)

Abstract

Emerging market economies (EMEs) face continuing challenges in managing boom-bust capital flow cycles. Flows have become increasingly volatile, putting upward pressures on currencies during the boom, and creating dislocations during the bust. During 2008, flows to EMEs, which had peaked at $665 billion the previous year, plummeted to less than $170 billion, only to surge again in 2010 as the global recovery got underway. Following the US sovereign downgrade, capital flows to EMEs again dried up, then resumed, and they have been bouncing around quite a bit ever since. This volatility, moreover, is unlikely to be the exclusive result of country-specific factors in the recipient countries (pull factors), but likely reflects global forces to a significant degree, including the changing monetary policy in major source countries and risk-on-risk-off considerations. Debates have ensued about how emerging market countries should manage this capital flow volatility.

Suggested Citation

  • Jonathan D. Ostry, 2016. "Managing the Exchange Rate in the Face of Volatile Capital Flows," International Economic Association Series, in: Joseph E. Stiglitz & Martin Guzman (ed.), Contemporary Issues in Macroeconomics, chapter 10, pages 129-147, Palgrave Macmillan.
  • Handle: RePEc:pal:intecp:978-1-137-52958-9_11
    DOI: 10.1057/9781137529589_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohamed Ibrahim Nor & Tajul Ariffin Masron & Tariq Tawfeeq Yousif Alabdullah, 2020. "Macroeconomic Fundamentals and the Exchange Rate Volatility: Empirical Evidence From Somalia," SAGE Open, , vol. 10(1), pages 21582440198, January.
    2. Jeffrey Frankel, 2021. "Systematic Managed Floating," World Scientific Book Chapters, in: Steven J Davis & Edward S Robinson & Bernard Yeung (ed.), THE ASIAN MONETARY POLICY FORUM Insights for Central Banking, chapter 5, pages 160-221, World Scientific Publishing Co. Pte. Ltd..

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:intecp:978-1-137-52958-9_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.