Foreign Reserves of Emerging Market Economies, Bond Free-Float and the Nominal Term Structure of German Interest Rates

2018 ◽  
Author(s):  
Matjaz Maletic
Keyword(s):  
Interest Rates ◽  
Term Structure ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Foreign Reserves ◽  
Market Economies ◽  
Nominal Term

Growth Prospects for Advanced and Emerging Market Economies

2016 ◽  
Vol 16 (4) ◽  
pp. 599-614 ◽  
Author(s):  
Dominick Salvatore
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Fiscal Stimulus ◽  
Secular Stagnation ◽  
Market Economies ◽  
The World ◽  
Growth Prospects

This paper examines the reasons for the slow growth in the advanced countries since the recent global financial crisis, the slowdown in growth or recession in emerging market economies, the danger that the world may be drifting toward a new global financial crisis, and that it may face even secular stagnation. The paper concludes that growth is likely to remain slow for the rest of this decade in advanced countries and to continue to decline in emerging market economies. It also examines the danger that with interest rates at the zero-bound level in advanced nations, a new financial bubble may be in the making as investors, in search of returns, undertake excessively risky investments, and that this may lead to a new global financial crisis. It is not certain, however, that the world is facing secular stagnation and, if so, that a new massive fiscal stimulus (as advocated but some) would prevent it or correct it.

scholarly journals De-Leveraging and Mitigating Pro-Cyclicality of Capital Flows in Emerging Market Economies: Role of Macro-Prudential Policies

2013 ◽  
Author(s):  
Tolga Dağlaroğlu ◽  
Baki Demirel ◽  
Serdar Varlık
Keyword(s):  
Interest Rates ◽  
Capital Flows ◽  
Foreign Currency ◽  
Emerging Market ◽  
Capital Inflows ◽  
Emerging Market Economies ◽  
Strongly Correlated ◽  
International Capital ◽  
Market Economies

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.

Are Rising U.S. Interest Rates Destabilizing for Emerging Market Economies?

FEDS Notes ◽  
2021 ◽  
Vol 2021 (2915) ◽  
Author(s):  
Jasper Hoek ◽  
◽  
Emre Yoldas ◽  
Steve Kamin ◽  
◽  
...  
Keyword(s):  
Interest Rates ◽  
Financial Crises ◽  
Emerging Market ◽  
Emerging Market Economies ◽  
Black Line ◽  
Federal Funds ◽  
Federal Funds Rate ◽  
Market Economies ◽  
Financial Conditions ◽  
Capital Outflows

Rising U.S. interest rates are often thought to be bad news for emerging market economies (EMEs) as they increase debt burdens, trigger capital outflows, and generally cause a tightening of financial conditions that can lead to financial crises. Indeed, as shown in Figure 1 below, the rise in the federal funds rate (the black line) during the Volcker disinflation of the early 1980s was associated with a sharp rise in the incidence of financial crises in EMEs (the green bars).

Harinder S. Kohli (ed.). Growth and Development in Emerging Market Economies: International Private Capital Flows, Financial Markets and Globalisation. New Delhi: Sage Publication 2008. 369 pages. Hardbound. Indian Rs 695.00.

2008 ◽  
Vol 47 (3) ◽  
pp. 304-305
Author(s):  
Henna Ahsan
Keyword(s):  
Capital Flows ◽  
Growth And Development ◽  
Global Economy ◽  
Emerging Market ◽  
Balance Sheet ◽  
Emerging Market Economies ◽  
New Delhi ◽  
Infrastructure Development ◽  
Market Economies ◽  
Emerging Market Countries

The book discusses the different experiences in Asia and Latin America, while covering the closely related areas under the purview of Emerging Market Economies (EMEs). The first chapter, “Introduction and Overview” has written by Harinder S. Kohli gives an excellent review of the existing literature on the subject. The book discusses six related topics which include nine papers presented at the Emerging Markets Forum Meeting held in Jakarta, Indonesia, in September 2006. The book highlights the main factors of growth and development in Emerging Market Economies (EMEs) now closely related with international capital flows, development of financial market, the countries’ ability to integrate successfully with the global economy through trade and investment and their ability to forge public-private partnerships including infrastructure development. Chapter 2, of the book is an article titled “Global Imbalances, Oil Revenues and Capital Flows to Emerging Market Countries” by Jack Boorman explains the favourable global environment and its impact on capital flows to Emerging Market Countries (EMCs). The EMCs got advantage from this benign global economic environment, such as high economic growth rate, increase in exports, better national balance sheet and increase in foreign exchange reserves, but due to high oil prices the situation has been changed.

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