The Management of Capital Flows in Asia Author: Yılmaz Akyüz Publisher: TWN ISBN: 978-967-5412-50-9 Year: 2011   No. of pages: 240 16.5    cm x 24 cm

About the Book

The 1997 Asian financial crisis brought home to the region’s economies the importance of managing capital flows in order to avert financial shocks. This book looks into whether and how this lesson was taken on board by policy makers in Asia, and, accordingly, how capital account regimes in the region evolved in the post-crisis period.

The early years of the new millennium saw a strong surge of capital flows into Asian emerging markets amid conditions of ample global liquidity. In response to the influx of funds, these countries generally chose to keep their capital accounts open to inflows, dealing with the attendant impacts by liberalizing resident outflows and accumulating foreign exchange reserves. While this approach enabled them to avoid unsustainable currency appreciations and external deficits, it did not prevent the emergence of asset, credit and investment bubbles and domestic market vulnerability to external financial shocks – as the events following the 2007 subprime crisis would prove.

This book – a compilation of papers written in 2008 for the first phase of a Third World Network research project on financial policies in Asia – examines the above developments in relation to the region in general and to four major Asian developing economies: China, India, Malaysia and Thailand.

About the Author

Dr Yılmaz Akyüz is Chief Economist of the South Centre and a former Director of the Division on Globalization and Development Strategies at the United Nations Conference on Trade and Development (UNCTAD). He directed the TWN research project on financial policies in Asia.

Contents

1    The Management of Capital Flows and Financial Vulnerability in Asia          

      Yilmaz Akyüz

2    The Management of Cross-Border Capital Flows and Macroeconomic Stability in China         

      Yu Yongding

3    Financial Liberalization and the New Dynamics of Growth in India            

      CP Chandrasekhar

4    Financial Policy and Management of Capital Flows: The Case of Malaysia                                                                                                     

      Martin Khor

5    Hot Money and Capital Controls in Thailand                                                 

      Thawatchai Jittrapanun and Suthy Prasartset

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