EFFECTS OF QUANTITATIVE EASING ON ASIA: CAPITAL FLOWS AND FINANCIAL MARKETS

Quantitative Easing and Financial Stability∗

The massive expansion of central-bank balance sheets in response to recent crises raises important questions about the effects of such “quantitative easing” policies, both their effects on financial conditions and on aggregate demand (the intended effects of the policies), and their possible collateral effects on financial stability. The present paper compares three alternative dimensions of ce...

Capital Flows, Output Volatility, and Financial Crises in Emerging Markets

The surge in capital flows towards emerging market countries is one of the major developments in the world economy in the 1990s. In particular, short-term flows, in the form of portfolio investments or bank loans, have grown at an extremely rapid pace. At the same time, emerging markets have experienced an increasing number of financial crises, with dire consequences. It is increasingly argued ...

Capital Flows and Financial Crises

This paper suggests, first, that a simple theoretical framework is useful in explaining financial crises in emerging economies. Second, it reviews the East Asian financial crises of 1997-98 . Third, the paper examines the origins of Argentina’s crisis of 2001-02. Fourth, it presents a comparative analysis of both crises, highlighting their similarities and differences. Finally, the conclusions ...

On the Road to Recovery? International Capital Flows and Domestic Financial Reforms in East Asia

ON THE ROAD TO RECOVERY? INTERNATIONAL CAPITAL FLOWS AND DOMESTIC FINANCIAL REFORMS IN EAST ASIA Ramkishen S. Rajan This paper discusses trends and patterns in international capital flows in the crisis affected East Asian economies during the bust period and eventual recovery that followed (1997 to early 2000). The economies have experienced a rapid rebound in regional economic activity, i.e. t...

Relationship Between Financial Crisis And Oil Shock And Its Effect On East- West Asia Trade Flows