scholarly journals Unconventional monetary policy and international equity capital flows to emerging markets

2021 ◽  
Author(s):  
Christoforos K. Andreou ◽  
Nebojsa Dimic ◽  
Vanja Piljak ◽  
Andreas Savvides
Keyword(s):  
Monetary Policy ◽  
Emerging Markets ◽  
Capital Flows ◽  
Equity Capital ◽  
Unconventional Monetary Policy ◽  
International Equity

scholarly journals External effects of US monetary policy

2018 ◽  
Vol 11 (2) ◽  
pp. 82-99
Author(s):  
M. Yu. GOLOVNIN
Keyword(s):  
Monetary Policy ◽  
Emerging Markets ◽  
Interest Rates ◽  
Capital Flows ◽  
Treasury Bills ◽  
The Us ◽  
National Economies ◽  
The Impact ◽  
Us Monetary Policy

The article focuses on the changes in US monetary policy since the  beginning of the 21st century and reveals the impact of this policy  on the national economies of other countries, especially emerging markets. The US monetary policy influenced the emerging  markets both through the real and financial channels. Through the  latter, the main impact was on the Treasury bills rates and on the  exchange rates. At the same time, the influence on different  countries varied in different periods. For example, interest rates in  Thailand, Mexico and Pakistan before the global economic and  financial crisis in general followed the cycle of US monetary policy.  The “quantitative easing” policy, the statements and the follow-up  actions to abolish it, have influenced cross-border capital flows to  emerging markets. A number of countries, including Russia,  experienced the impact of US monetary policy through the dynamics  of oil prices. Emerging markets face restrictions on their monetary  policy from the US monetary policy, but in practice they seek to  circumvent them through exchange rate regulation, restrictions on  crossborder capital flows and the pursuit of an independent monetary policy, not following the  cycles of interest rate changes in the US.

scholarly journals The Lucas Paradox and Institutional Quality: Evidence from Emerging Markets

2020 ◽  
Vol 6 (2) ◽  
pp. 561-570
Author(s):  
Muhammad Atiq-ur- Rehman ◽  
Allah Ditta ◽  
Muhammad Atif Nawaz ◽  
Furrukh Bashir
Keyword(s):  
Emerging Markets ◽  
Low Income ◽  
Capital Flows ◽  
Institutional Quality ◽  
Equity Capital ◽  
Neoclassical Theory ◽  
Financial Flows ◽  
Contradictory Behavior ◽  
The Empirical Analysis

The neoclassical theory illustrates that the capital will flow from the capital-rich economies towards the capital-poor states. However, it is generally observed that the capital does not move from high-income to low-income economies. This contradictory behavior of global capital flows is called the Lucas paradox. According to Alfaro, Kalemli-Ozcan, & Volosovych (AKV) model, the Lucas paradox can be entirely explained by the institutional quality. In the light of AKV notion, this paper examines the role of institutional quality in explaining the Lucas paradox. The empirical analysis involves 17 major emerging economies of the world by using panel data for the period 1999-2018. The GMM estimation reveals that the Lucas paradox is explained by the institutional quality in case of FDI flows only. However, institutional quality indicators generally remain unable to explain the paradox in case of portfolio equity capital flows. Moreover, financial development is found to be a significant determinant of portfolio equity flows in the emerging markets. Finally, we suggest that the financial flows to the emerging markets are sensitive to the nature of the capital flows.

Did the Unconventional Monetary Policy of the U.S. Hurt Emerging Markets?

2021 ◽  
Author(s):  
Matthew Canzoneri ◽  
Robert Cumby ◽  
Behzad Diba ◽  
Yunsang Kim
Keyword(s):  
Monetary Policy ◽  
Emerging Markets ◽  
Unconventional Monetary Policy ◽  
The U.S
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