02226cas a2200265 a 4500 AALejournalIMF005670 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871883 1018-5941 BD-DhAAL BD-DhAAL Elekdag, Selim. Capital Inflows : Macroeconomic Implications and Policy Responses / Selim Elekdag, Ayhan Kose, Roberto Cardarelli. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (62 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the macroeconomic implications of, and policy responses to surges in private capital inflows across a large group of emerging and advanced economies. In particular, we identify 109 episodes of large net private capital inflows to 52 countries over 1987-2007. Episodes of large capital inflows are often associated with real exchange rate appreciations and deteriorating current account balances. More importantly, such episodes tend to be accompanied by an acceleration of GDP growth, but afterwards growth has often dropped significantly. A comprehensive assessment of various policy responses to the large inflow episodes leads to three major conclusions. First, keeping public expenditure growth steady during episodes can help limit real currency appreciation and foster better growth outcomes in their aftermath. Second, resisting nominal exchange rate appreciation through sterilized intervention is likely to be ineffective when the influx of capital is persistent. Third, tightening capital controls has not in general been associated with better outcomes. Mode of access: Internet Cardarelli, Roberto. Kose, Ayhan. IMF Working Papers; Working Paper ; No. 2009/040 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/040/001.2009.issue-040-en.xml IMF e-Library