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Macroprudential Policy under High Capital Mobility: Policy Implications from an Academic Perspective

In: International Finance in the Global Markets

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  • Charles Engel
Abstract
The paper explicates the issues raised for macroprudential regulation in a global economy with high capital mobility. The study surveys the recent literature and aims to translate the academic rationale for such policies, in which market imperfections lead to external effects that require policy interventions. The new economics of capital controls is addressed, in which capital flow management measures may be introduced to reduce financial market distortions or to help stabilize exchange rate movements in the face of other market distortions. The empirical literature on the effectiveness of such policies is surveyed.
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Suggested Citation

  • Charles Engel, 2015. "Macroprudential Policy under High Capital Mobility: Policy Implications from an Academic Perspective," NBER Chapters, in: International Finance in the Global Markets, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:13729
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    More about this item

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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