Managing Capital Flows in Asia: An Overview of Key Issues
Yap, Josef; Villafuerte, James | November 2015
Abstract
Global capital flows into emerging markets, including those in Asia, continue to be volatile. These capital
flows generate both benefits and costs. The latter are associated with episodes of currency and banking
crises like the 1997 Asian financial crisis and the 2008 global financial and economic crisis. Recent data show
that the main impact of capital flows on the economies of East Asia is reflected in real effective exchange
rates, equity prices, and accumulation of foreign exchange reserves. In particular, econometric results show
the strong linkages between the United States bond markets and those in Asia, particularly the adverse
impact of quantitative easing tapering on Asian economies. These findings support the important role of
macroprudential policy, which can be implemented in the context of regional cooperation in order to reduce
negative spillovers across economies in Asia.
Citation
Yap, Josef; Villafuerte, James. 2015. Managing Capital Flows in Asia: An Overview of Key Issues. © Asian Development Bank. http://hdl.handle.net/11540/5271. License: C BY 3.0 IGO.ISSN
2313-6537 (Print), 2313-6545 (e-ISSN)
Keywords
Economic Development
Economic Infrastructure
Economic Policies
Regional Economic Development
Microfinance Programs
Public Finance
Financial Stability
Financial Sector Regulation
Enterprises
Financial aid
Economies in transition
Local Finance
Insurance Companies
Social responsibility of business
Regional economics
Economic forecasting
Economic development projects
Show allCollapse
Citable URI
http://hdl.handle.net/11540/5271Metadata
Show full item recordUsers also downloaded
-
Asian Development Bank Sustainability Report 2015: Investing for an Asia and the Pacific Free of Poverty
Asian Development Bank (Asian Development Bank, 2015-12-18)The Asian Development Bank (ADB) has issued its Sustainability Report every 2 years since 2007. For 2015, the Sustainability Report highlights the sustainability of ADB’s investments and organizational activities during 2013– 2014. A separate detailed Global Reporting Initiative (GRI) index contains the responses of ADB to standard and specific material disclosures in the GRI’s G4 Sustainability ...The Asian Development Bank (ADB) has issued its Sustainability Report every 2 years since 2007. For 2015, the Sustainability Report highlights the sustainability of ADB’s investments and organizational activities during 2013– 2014. A separate detailed ... -
Water-Related Disasters and Disaster Risk Management in the People’s Republic of China
Asian Development Bank (Asian Development Bank, 2015-12-14)Disaster risk now presents one of the most serious threats to inclusive and sustainable socioeconomic development. In the People’s Republic of China (PRC), the incidence of natural disasters—particularly water-related disasters—are on the rise, resulting in an increased exposure to and vulnerability of the population to disasters. Coupled with anticipated increases in the frequency and intensity ...Disaster risk now presents one of the most serious threats to inclusive and sustainable socioeconomic development. In the People’s Republic of China (PRC), the incidence of natural disasters—particularly water-related disasters—are on the rise, ...