Abstract
The problem of boom-bust cycles in capital flows to emerging markets is well recognized. This chapter examines which forms of capital flow are particularly problematic in this respect and which are more stable, and then considers what might be done to stabilize the overall flow of private capital. The possibilities here involve altering either the volume or the behaviour of the various types of flow. There is not much that can be done from the supply side to alter the relative volume of different forms of capital flow; such policies as are available in this respect concern the capital controls that can be exercised by capital-importing countries, a subject that is dealt with in Chapter 12. Hence this chapter focuses on the ways in which supply-side reforms might be able to alter the behaviour of certain types of capital flow.
The author acknowledges the helpful discussion of other participants at the UNU/ WIDER workshop in Santiago in March 2001.
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Williamson, J. (2003). Proposals for Curbing the Boom-Bust Cycle in the Supply of Capital to Emerging Markets. 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_8
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DOI: https://doi.org/10.1057/9781403990099_8
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