Monetary Policy and Capital Flow Implications on Economic Growth in BRICS Countries

Abstract

The study focuses on the BRICS economies for the duration 2001 up to 2015. The causality results revealed a unidirectional causality from foreign direct investment and broad money to total reserves, real GDP per capita and broad money to total reserves, broad money to total reserves and real interest rates as a percentage, foreign direct investment and commercial bank, debt stock, commercial bank, lending, foreign direct investments, real interest rates, and domestic credit provided by financial sector, domestic credit provided by financial sector, real GDP per capita.