Comments by Kyunghun Kim, on Managing Economic Stability under Volatile Capital Flows: East Asia Perspectives

Abstract

January 01 2017 Comments by Kyunghun Kim, on Managing Economic Stability under Volatile Capital Flows: East Asia Perspectives Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2017 by the Earth Institute at Columbia University and the Massachusetts Institute of Technology2017Massachusetts Institute of Technology Asian Economic Papers (2017) 16 (1): 197–198. https://doi.org/10.1162/ASEP_a_00502 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Comments by Kyunghun Kim, on Managing Economic Stability under Volatile Capital Flows: East Asia Perspectives. Asian Economic Papers 2017; 16 (1): 197–198. doi: https://doi.org/10.1162/ASEP_a_00502 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Kyunghun Kim: This paper investigates the maintenance of economic stability given volatile capital flows, specifically, focusing on the emerging market economies in East Asia. The author argues that emerging market economies (EMEs) are particularly vulnerable to risks and volatilities from volatile capital flows. Thus, EMEs in East Asia need to have macroeconomic policies and safety nets for economic stability. The policies that the author suggests are a flexible exchange rate, an inflation targeting framework, exchange rate management, and reserve accumulation. The author should proceed carefully regarding the suggested policy on a more flexible exchange rate. Aghion et al. (2009) show that the impact of exchange rate volatility on productivity growth varies with the degree of financial market development. In the case of EMEs, in which the financial market development is relatively lower than the advanced economies, exchange rate volatility could reduce the productivity growth. Additionally, a more flexible... You do not currently have access to this content.