Curbing Hot Capital Flows to Protect the Real Economy

Developing countries are once again the destination for speculative capital flows with inflows reaching pre-crisis levels, leading to currency appreciation and asset bubbles. Many of these nations are deploying prudential capital regulations to stem these flows. However, this may only be a partial r...

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Bibliographic Details
Published in:	Economic and political weekly Vol. 46; no. 3; pp. 12 - 14
Main Authors:	GRIFFITH-JONES, STEPHANY, GALLAGHER, KEVIN P
Format:	Journal Article Magazine Article
Language:	English
Published:	Mumbai Sameeksha Trust 15-01-2011 Athena Information Solutions Pvt. Ltd
Subjects:	Capital controls Capital investments Capital mobility Capital movement COMMENTARY Currency Developing countries Economic aspects Economic crises Economic crisis Economic growth Emerging markets Foreign investments Industrialized nations Interest rates International finance Laws, regulations and rules LDCs Macroeconomic policy Macroeconomics Regulation Reserve requirements Short term debt Trade United States economic conditions Brazil Thailand United States > US Asia Latin America
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Summary:	Developing countries are once again the destination for speculative capital flows with inflows reaching pre-crisis levels, leading to currency appreciation and asset bubbles. Many of these nations are deploying prudential capital regulations to stem these flows. However, this may only be a partial remedy to the problem – such measures should be coupled with action by the developed countries in order to fully steer capital to productive use and to avoid future crises.
Bibliography:	content type line 24 ObjectType-News-1 SourceType-Magazines-1
ISSN:	0012-9976 2349-8846