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THE DETERMINANTS OF PRIVATE CAPITAL FLOWS IN EMERGING ECONOMIES: THE ROLE OF THE FED'S UNCONVENTIONAL MONETARY POLICY
Author(s) -
GamboaEstrada Fredy
Publication year - 2020
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12474
Subject(s) - economics , monetary policy , monetary economics , capital flows , capital (architecture) , emerging markets , capital outflow , capital formation , financial capital , international economics , macroeconomics , market economy , human capital , liberalization , archaeology , history
Previous studies on the effect of the Fed's Unconventional Monetary Policy on capital flows in Emerging Economies have not been conclusive. I analyze if the effect of these policies on capital flows is heterogeneous between countries. This approach could be the smoking gun in this debate as I attempt to find evidence of a specific mechanism by which Unconventional Monetary Policy could affect the pattern of capital flows in Emerging Economies. The results suggest that Unconventional Monetary Policy has a significant effect on capital flows which depends on the type of measure adopted and the degree of financial exposure of each country to the United States. ( JEL C23, E52, E58, F21, F32)