Publications /
Policy Paper

Back
Download PDF
The Metamorphosis of Finance and Capital Flows to Emerging Market Economies
Authors
Otaviano Canuto
November 25, 2021
Related topics: 
Economy
Sectorial policies and structural transformation
International Relations

The decade after the Great Financial Crisis of 2007–09 brought significant changes in the volume and composition of capital flows in the global economy. Portfolio investments and other non-bank financial intermediaries are responsible for an increasing share of foreign capital flows, while banking flows have shrunk in relative terms. This paper considers the implications of such a metamorphosis of finance for capital flows to emerging market economies (EMEs). After examining capital flows from the global financial crisis to the 2020-21 pandemic crisis, we analyze the extent to which a normalization of monetary policies in advanced economies may lead to shocks in those flows, as well as why exchange rate fluctuations between the U.S. dollar and other major currencies can affect capital flows to EMEs. Finally, we assess the range of policy instruments that EME policymakers tend to resort to manage risks derived from capital-flow volatility.

RELATED CONTENT

  • Download PDF
    International Jobs Report: Edition 2016
    Authors
    Prakash Loungani
    Russel Dinh
    January 27, 2016
    The IMF recently revised down its growth forecasts, making large changes in the forecasts for some emerging markets, in particular Brazil and oil-producing countries (such as Nigeria and Saudi Arabia). This report presents a snapshot of the global unemployment outlook and discusses what the recent revisions could mean for the unemployment outlook for these countries based on past relationships between growth and unemployment. We conclude with a look at the growth-unemployment link f ...
  • Download PDF
    Masters of the Algorithms: The Geopolitics of the New Digital Economy from Ford to Google
    Authors
    Alfredo Da Gama e Abreu Valladão
    May 2, 2014
    The financial and economic crisis that unfolded across the globe after the 2008 sub-prime meltdown was not just another cyclical bump in the conquering advance of modern capitalism. It was — and still is — a symptom of the exhausted 20th-century way of envisioning the best path to economic growth, consumer satisfaction, and efficient production of goods. Environmental limits to our race to prosperity are just part of the story. The other, and crucial, part is the ongoing technologic ...

  • From

    06
    11:00 am October 2026

    Présentation du Papier : Le Maroc face à un monde fragmenté : la stratégie d’un pays connecteur

    Dans un environnement international reconfiguré, les économies à revenu intermédiaire poursuivent leur processus de convergence dans des conditions plus exigeantes. La fragmentation géopolitique et la réorganisation des chaînes de valeur mondiales modifient les logiques d'insertion productive, tandis que les tensions sur le système monétaire international pèsent sur le financement des économies en développement. L'accélération des transitions technologique et énergétique redistribue par ailleurs les avantages comparatifs et exige des capacités d'adaptation que tous les pays ne peuvent mobiliser au même degré. Les moteurs classiques du rattrapage se trouvent fragilisés, et le risque d'enlisement dans le piège du revenu intermédiaire se pose de manière plus pressante.C'est dans ...