Robert McCauley maps the capital flows that preceded the 2008 crisis and argues that it was European banks that fuelled the U.S. housing boom. Large official inflows into U.S. Treasury and agency notes should have reinforced a U.S. mortgage market dominated by fixed-rate mortgages. Instead, one...

The Chinese authorities described the management of the renminbi after its 2005 unpegging from the US dollar as involving a basket of trading partner currencies. Outside analysts have detected few signs of such management. We find that, in the 2 years from mid-2006 to mid-2008, the renminbi...

[eng] Renminbisation of China’s international assets . Since the 2008 global financial crisis, China has rolled out a number of initiatives to actively promote the international role of the renminbi and to denominate more of its international claims away from the US dollar and into the...

Measures of de facto capital account openness for China and India raise the question whether the Chinn-Ito measure of de jure capital account openness is useful and whether the Lane-Milesi-Ferretti measure of de facto openness ranks the two countries correctly. We examine eight dimensions of de...

Managing Capital Flows provides analyses designed to help policymakers develop a framework for managing capital flows that is consistent with prudent macroeconomic and financial sector stability.

[eng] Reining in China’s growth in a world of increased capital flows . Global markets have all reacted to fears of a disruptive slowdown in China resulting from a policy response to excessive growth. The Chinese government has responded to the latest cyclical upswing with a mix of...

There is a widespread view that China’s currency can be used in international markets only after the liberalisation of China’s domestic financial markets and the opening of its capital account. Yet evidently the renminbi’s internationalisation is preceding these so-called preconditions....