Capital Flows to Developing Countries Since the Asian Crisis: How to Manage their volatility?
Capital Flows to Developing Countires Since the Asian Crisis: How to Manage their volatility?
Development and Finance
The project intends to fill the gaps in knowledge in two related areas: 1) what determines decisions by lenders/investors to enter or withdraw from individual developing countries? Even more, how has this decision making process been modified by recent crises and by the subsequent discussion of and measures taken for - a new financial architecture; 2) at a national level, in developing countries, what are the policy implications especially for macroeconomic and financial regulation policies, as well as for their interconnections - of volatile and reversible capital flows? In this context what policies are best pursued to maximise growth, investment and employment in the long-term, whilst minimising risk of developmentally costly currency and financial crises? The project will consist of two closely integrated and highly complementary parts: 1) analysis of new trends in the supply of different categories of capital flows, since the Asian crisis, as well as their determinants, and international policy and regulatory implications of these trends and 2) evaluation of national policies to reduce both the volatility of capital flows and its' negative domestic impact."