Columbia International Affairs Online: Working Papers

CIAO DATE: 04/2015

Capital Flows and Capital Account Management in Selected Asian Economies

Rajeswari Sengupta, Abhuit Sen Gupta

March 2016

Centre for International Governance Innovation

Abstract

Gross capital inflows and outflows to and from emerging market economies have witnessed a significant increase since the early 2000s. This rapid increase in the volume of flows, accompanied by sharp swings in volatility, has amplified the complexity of macroeconomic management in emerging economies. This paper focuses on capital flows in selected emerging Asian economies, analyzing surge and stop episodes, then evaluating the policy measures undertaken by these economies in response.