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Foreign capital inflows regulation by monetary policy tools
https://doi.org/10.32609/0042-8736-2013-6-45-58
Abstract
The paper examines the benefits and limitations of capital control and prudential regulation in order to maintain macroeconomic and financial stability. In practice regulators often use different combinations of capital control and prudential instruments, attempted to identify and correct financial market failures and externalities across financial institutions and between the financial sector and the real economy, which are originated from foreign capital inflows. The concrete option of political instruments depends on risks essence, institutional limitations, and the depth of internal financial market. The regulators need to use different tools in foreign capital inflows management, taking into account the variety of risks and the lack of universal instruments. Their sets can vary across countries.
About the Authors
S. Andryushin
Financial University under the Government of RF (Moscow, Russia); Institute of Economics RAS
Russian Federation
Russian Federation
V. Kuznetsova
Institute of Economics RAS; Lomonosov Moscow State University (Moscow, Russia)
Russian Federation
Russian Federation
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Review
For citations:
Andryushin S., Kuznetsova V. Foreign capital inflows regulation by monetary policy tools. Voprosy Ekonomiki. 2013;(6):45-58. (In Russ.) https://doi.org/10.32609/0042-8736-2013-6-45-58
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