Comments on “Capital Flow Deflection under the Magnifying Glass”

This paper explores my comments on "Capital Flow Deflection under the Magnifying Glass", a paper by Fillipo Gori et al. (2020), which is a coherent and timely overview of the major policy concerns on capital flow behavior, especially capital flow deflection. The paper explores quite extensive identification strategies, including robustness checks which are convincing in revealing spillovers. It also elaborates relevant assessment and leaves grounds for renewing a call for deeper international coordination of capital account policies, as collective policy coordination can mitigate negative externalities arising from unilateral actions. Unfortunately, it poses a relatively limited number of literatures, particularly empirical studies and policy perspectives on whether or not they support the findings. My discussion on this paper will explore more upon the bigger-picture of central bank policy issues, rather than the technical aspects. To conclude the discussion, we need to seek a state of urgency in how to bring together AEs and EMEs common mutual beneficial interests amidst increasing financial liberalization.