Taming the tides of capital – Review of capital controls and macroprudential policy in emerging economies

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Title: Taming the tides of capital – Review of capital controls and macroprudential policy in emerging economies
Author: Norring, Anni
Organization: Bank of Finland
Series: BoF Economics Review
Series number: 1/2022
Year of publication: 2022
Publication date: 17.1.2022
Pages: 40
Subject (yso): pääomanliikkeet; volatiliteetti; sääntely; tehokkuus
Keywords: kehittyvät markkinat; makrovakauspolitiikka; makrovakaus; makrovakausvälineet; pääomavirrat; pääomarajoitteet; nousevat taloudet
JEL: F32; F33; F38; F42
Other keywords: capital flows; emerging economies; CFMs; MPMs
Abstract: This paper gives an overview on the use of macroprudential policy measures (MPMs) and capital flow management measures (CFMs) by emerging economies, and reviews literature on the effectiveness of these measures in containing the effects of large and volatile capital flows. The main findings of the paper are the following: First, major EMEs tend to use both MPMs and CFMs more than AEs. Second, the empirical evidence on the effectiveness of CFMs remains mixed. Third, there is indicative evidence that MPMs can contain the effects of capital flow volatility. Lastly, there is still little research into the interaction of CFMs and MPMs.
Rights: https://helda.helsinki.fi/bof/copyright


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