ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Stephany Griffith-JonesSubscribe to Stephany Griffith-Jones

Curbing Hot Capital Flows to Protect the Real Economy

Developing countries are once again the destination for speculative capital flows with inflows reaching pre-crisis levels, leading to currency appreciation and asset bubbles. Many of these nations are deploying prudential capital regulations to stem these flows. However, this may only be a partial remedy to the problem - such measures should be coupled with action by the developed countries in order to fully steer capital to productive use and to avoid future crises.
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