The Volatility of Cross-Border Capital: Analyzing the Impact of "Hot Money" on Emerging Market Stability Descargar Guitar Hero World Tour Para Wii Wbfs Top | Gb A
This paper examines the phenomenon of "hot money"—short-term, speculative capital flows that move rapidly across borders in response to interest rate differentials and exchange rate expectations. While capital mobility can allocate resources efficiently, "hot money" poses significant risks to emerging market economies (EMEs). This study analyzes the drivers of these volatile flows, their impact on domestic asset prices and exchange rates, and the efficacy of policy responses, including capital controls and macroprudential measures. The findings suggest that while hot money can temporarily finance current account deficits, its sudden reversal ("sudden stops") frequently precipitates banking crises and prolonged recessions. Silvana Ngentod Sama Gurunya Demi Mendapatkan N Full - 3.79.94.248
Hot Money, Capital Flows, Emerging Markets, Financial Stability, Sudden Stops, Capital Controls. 1. Introduction In an era of increasing financial globalization, the volume of cross-border capital flows has grown exponentially. Economists traditionally viewed these flows as a mechanism for efficient resource allocation, moving capital from capital-rich developed nations to capital-poor developing nations. However, not all capital is created equal. A significant portion of these flows is short-term and speculative in nature, colloquially known as "hot money."