Volatile Capital Flows and Financial Stress in Emerging Economies
Fuente:
Wiley Open Access
Salvato in:
| Autori principali: | , |
|---|---|
| Natura: | Artículo Open Access |
| Pubblicazione: |
Wiley
2025
|
| Soggetti: | |
| Accesso online: | |
| Tags: |
Aggiungi Tag
Nessun Tag, puoi essere il primo ad aggiungerne!!
|
| _version_ | 1867019901356474368 |
|---|---|
| author | Zhuoya Guo Yanxi Li |
| author_facet | Zhuoya Guo Yanxi Li Zhuoya Guo Yanxi Li |
| collection | Wiley Open Access |
| contents | Volatile Capital Flows and Financial Stress in Emerging Economies Zhuoya Guo Yanxi Li Review of Development Economics ABSTRACT In this paper, we examine the links between the volatility of capital flows and financial stress in emerging economies. In particular, we explore whether macroprudential policies mitigate the exacerbating effects of capital flows volatility on financial stress. Using cross‐country data from 2010Q1 to 2022Q4, we find that the volatility of capital flows can drive up domestic financial stress. The findings hold for both aggregate capital flows and its various components, and for both directions. Macroprudential policies weaken the level of financial stress by dampening the exacerbating impact of volatile capital flows, except for portfolio investment. The results indicate that more effective policies need to be designed to regulate portfolio investment and ensure financial stability in emerging economies. 10.1111/rode.70049 http://onlinelibrary.wiley.com/termsAndConditions#vor |
| doi_str_mv | 10.1111/rode.70049 |
| format | Artículo Open Access |
| id | wiley_oa_10_1111_rode_70049 |
| institution | Wiley Open Access |
| license_str_mv | http://onlinelibrary.wiley.com/termsAndConditions#vor |
| publishDate | 2025 |
| publisher | Wiley |
| record_format | wiley_oa |
| spellingShingle | Volatile Capital Flows and Financial Stress in Emerging Economies Zhuoya Guo Yanxi Li Review of Development Economics Volatile Capital Flows and Financial Stress in Emerging Economies Zhuoya Guo Yanxi Li Review of Development Economics ABSTRACT In this paper, we examine the links between the volatility of capital flows and financial stress in emerging economies. In particular, we explore whether macroprudential policies mitigate the exacerbating effects of capital flows volatility on financial stress. Using cross‐country data from 2010Q1 to 2022Q4, we find that the volatility of capital flows can drive up domestic financial stress. The findings hold for both aggregate capital flows and its various components, and for both directions. Macroprudential policies weaken the level of financial stress by dampening the exacerbating impact of volatile capital flows, except for portfolio investment. The results indicate that more effective policies need to be designed to regulate portfolio investment and ensure financial stability in emerging economies. 10.1111/rode.70049 http://onlinelibrary.wiley.com/termsAndConditions#vor |
| title | Volatile Capital Flows and Financial Stress in Emerging Economies |
| topic | Review of Development Economics |
| url | https://onlinelibrary.wiley.com/doi/10.1111/rode.70049 |