International Conference on Eurasian Economies
17-18 September 2013 – St. Petersburg, RUSSIA
Paper detail
Paper ID : 727
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Mr. Tolga Dağlaroğlu
Session : 2C Finans
De-Leveraging and Mitigating Pro-Cyclicality of Capital Flows in Emerging Market Economies: Role of Macro-Prudential Policies
Bilanço Düzeltme Sürecinde Gelişmekte Olan Piyasa Ekonomilerinde Ani Duruş Problemine Karşı Makro Basiretli Politikalar
- Mr. Tolga Dağlaroğlu (Gazi University, Türkiye)
- Dr. Baki Demirel (Gaziosmanpaşa University, Türkiye)
- Assoc. Prof. Dr. Serdar VARLIK (Hitit Üniversitesi, Türkiye)
Abstract
International capital flows have been on an unprecedented roller-coaster ride in recent years. Capital flows to emerging market economies have been strongly correlated with changes in global financing conditions, rising sharply during periods with relatively low global interest rates and low VIX (called risk-on) and shrinking afterward. In open emerging market economies, interest rate increases can attract excessive capital inflows appreciating the exchange rate, and leading to excessive borrowing in foreign currency, and encouraging leverage. A well-designed macro prudential policy prevents credit –driven bubble and mitigating pro-cyclicality of capital flows.
JEL codes: E58, E61, F41
Dağlaroğlu, Tolga, Demirel, Baki , VARLIK, Serdar (2013). "De-Leveraging and Mitigating Pro-Cyclicality of Capital Flows in Emerging Market Economies: Role of Macro-Prudential Policies" in Proceedings of International Conference of Eurasian Economies 2013, pp.579-588, St. Petersburg, RUSSIA.
DOI: https://doi.org/10.36880/C04.00727
