Gross Capital Flows: Dynamics and Crises
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Citations
The relationships among capital flow surges, reversals and sudden stops
Capital Flows in Risky Times: Risk-on/Risk-off and Emerging Market Tail Risk
Global Drivers of Gross and Net Capital Flows
Portfolio Choice and Partial Default in Emerging Markets: a quantitative analysis
Toolkit for the analysis of current account imbalances
References
This Time Is Different: Eight Centuries of Financial Folly
The External Wealth of Nations Mark Ii: Revised and Extended Estimates of Foreign Assets and Liabilities, 1970-2004
Leading Indicators of Currency Crises
Currency crashes in emerging markets: An empirical treatment
Systemic Banking Crises: A New Database
Related Papers (5)
Frequently Asked Questions (12)
Q2. What would be the type of retrenchment observed in the data?
for example, crises were associated with a worsening of investor property rights that affected foreign creditors more than domestic creditors, the authors would expect the type of retrenchment observed in the data.
Q3. Why are some small countries a concern?
Some small countries are a concern due to their possible role as offshore financial centers or tax havens; many small economies often display an artificially high volume of financial transactions.
Q4. What is the meaning of a negative CID?
a negative CID should be interpreted as capital outflows by domestic agents whereas a positive CID means capital inflows.
Q5. How many crises have been observed in these countries?
All countries faced at least one crisis within their sample period and a total of 78 crises episodes (24 severe ones) have been observed in these countries.
Q6. How did the CID decline in the two years after the onset of the crisis?
capital inflows by foreigners remained at depressed levels (or declined even more for middle-income countries) during the two-year period after the onset of the crisis.
Q7. What is the role of international capital flows in the business cycles of developed and developing countries?
During the last decades, international capital flows have played an increasinglyimportant role in the business cycles of developed and developing countries, particularly during episodes of financial crises.
Q8. What is the evidence in Table 1 and Figure 3?
The evidence in Table 1 and Figure 3 suggests that capital inflows by domesticand foreign agents have become very large in recent years, surpassing the size of net international capital inflows.
Q9. How do the authors estimate the coefficient of capital flows in countries?
The authors do so by estimating the following regressions:,,,, tctctc ControlsXY εβα +++= (3)where Y stands for CIF, CID, or a measure of aggregate flows, CIF-CID; X represents either net capital flows, the trade balance in goods and services, or measures of the GDP fluctuations; and Controls stand for additional controls the authors include in the regressions such as country-trends or year dummies.
Q10. What is the effect of the retrenchment in capital flows in low-income countries?
The milder reaction of capital flows in low-income countries might be related to the relative size of official funding in comparison to total flows for these economies as these flows are unlikely to decline during crises.
Q11. How much of the growth in net flows by foreigners has been observed in the 2000s?
capital inflows by foreigners have grown considerably less, going from about 4 percent of trend GDP in the 1980s to only 4.2 percent in the 2000s.
Q12. How many standard deviations should be included in the ellipses?
the boundaries of the ellipses capture two standard deviations, which should encompass 86% of the total probability mass.