Fed Tightening and Capital Flow Reversals in Emerging Markets: What Do We Know?

Publication | February 2023
SHARE THIS PAGE

This brief shows how US Federal Reserve interest rate hikes risk sparking a wave of capital withdrawals from Asia’s emerging markets and outlines how speeding up much needed reforms can help governments cushion vulnerable economies.

It outlines key global inflation drivers, identifies capital inflows at risk, illustrates the economic knock-on effects of capital reversals, and suggests potential policy responses. Noting the challenges of carrying out major structural reforms, it argues that commitment to long-term macroeconomic measures is key to protecting developing economies against major shocks.

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Finance sector development
  • Governance and public sector management
Pages
  • 10
Dimensions
  • 8.5 x 11
SKU
  • BRF230046
ISBN
  • 978-92-9270-039-3 (print)
  • 978-92-9270-040-9 (electronic)
ISSN
  • 2071-7202 (print)
  • 2218-2675 (electronic)

Subscribe to our monthly digest of latest ADB publications.

Follow ADB Publications on social media.