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Managing Capital Flows provides analyses designed to help policymakers develop a framework for managing capital flows that is consistent with prudent macroeconomic and financial sector stability.While capital inflows can provide emerging market economies with significant benefits in pursuing economic development and growth, they can also pose serious policy challenges for macroeconomic management and financial sector supervision. The expert contributors cover a wide range of issues related to managing capital flows and analyze the experience of emerging Asian economies in dealing with surges in capital inflows. They also discuss possible policy measures to manage capital flows while remaining consistent with the goals of macroeconomic and financial sector stability. Building on this analysis, the book presents options for workable national policies and regional policy cooperation, particularly in exchange rate management.Containing chapters that bring in international experiences relevant to Asia and other emerging market economies, this insightful book will appeal to policymakers in governments and financial institutions as well as public and private finance experts. It will also be of great interest to advanced students and academic researchers in finance.
Edited by Masahiro Kawai, Project Professor, Graduate School of Public Policy, The University of Tokyo, Japan and Mario B. Lamberte, Director of Research, Asian Development Bank Institute, Tokyo, Japan
Contents:PrefaceMasahiro KawaiIntroductionMasahiro Kawai and Mario B. LambertePART I: MANAGING CAPITAL FLOWS IN EMERGING ASIA AND REVIEW OF THE LITERATURE1. Managing Capital Flows: Emerging Asia’s Experiences, Policy Issues and ChallengesMasahiro Kawai and Mario B. Lamberte 2. A Survey of the Literature on Managing Capital InflowsMasahiro Kawai and Shinji Takagi PART II: PERSPECTIVE PAPERS3. Central Banks and Capital FlowsStephen Grenville 4. Managing Large Capital Inflows: Taking Stock of International ExperiencesSusan Schadler 5. Managing Recent Hot Money Inflows in AsiaRobert N. McCauley 6. Crises, Capital Controls and Financial IntegrationEduardo Levy-Yeyati, Sergio L. Schmukler and Neeltje van Horen 7. Managing Capital Flows: Experiences from Central and Eastern EuropeJürgen von Hagen and Iulia Siedschlag PART III: COUNTRY STUDIES8. Managing Capital Flows: The Case of the People’s Republic of ChinaYongding Yu 9. Managing Capital Flows: The Case of IndiaAjay Shah and Ila Patnaik 10. Managing Capital Flows: The Case of IndonesiaIra S. Titiheruw and Raymond Atje 11. Managing Capital Flows: The Case of the Republic of KoreaSoyoung Kim and Doo Yong Yang 12. Managing Capital Flows: The Case of MalaysiaKee Kuan Foong 13. Managing Capital Flows: The Case of the PhilippinesJosef T. Yap 14. Managing Capital Flows: The Case of SingaporeHwee Kwan Chow 15. Managing Capital Flows: The Case of ThailandKanit Sangsubhan 16. Managing Capital Flows: The Case of Viet NamTri Thanh Vo and Chi Quang PhamIndex
‘This is a good reference work to identify the slow but steady paradigm shift in thinking about the role of the State in handling hot money flows across international boundaries. It should appeal to both policymakers and students in economics, banking and finance in the search for workable national policies in an increasingly global and interlinked economy.’