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Capital Account and Countercyclical Prudential Regulations in Developing Countries

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Book cover From Capital Surges to Drought

Part of the book series: Studies in Development Economics and Policy ((SDEP))

Abstract

The association between capital flows and economic activity has been a strong feature of the developing world, and particularly of emerging markets, for a quarter of a century. This highlights the central role played by the mechanisms that transmit externally generated boom–bust cycles in capital markets to the developing world, as well as the vulnerabilities they engender. The strength of business cycles in developing countries, and the high economic and social costs they generate, are thus related to the strong connections between domestic and international capital markets.

This chapter has benefited from joint work undertaken with Maria Luisa Chiappe for the Expert Group on Development Issues (EGDI), Ministry of Foreign Affairs of Sweden.

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Authors
  1. José Antonio Ocampo
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Editor information

Editors and Affiliations

  1. UN Economic Commission for Latin America and the Caribbean, Santiago, Chile

    Ricardo Ffrench-Davis

  2. Institute of Development Studies, Brighton, Sussex, UK

    Stephany Griffith-Jones

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© 2003 United Nations University

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Ocampo, J.A. (2003). Capital Account and Countercyclical Prudential Regulations in Developing Countries. In: Ffrench-Davis, R., Griffith-Jones, S. (eds) From Capital Surges to Drought. Studies in Development Economics and Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9781403990099_12

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