This paper analyzes the effect of capital flow management policies (CFMs) on extreme capital flow movements in 16 emerging market economies from 1999 to 2008. We show that both capital controls and macroprudential measures are effective in mitigating drastic changes of capital flows, but...

This paper examines the effect of global investor sentiment on capital inflows in the Korean stock and bond markets. First, we conclude that global investor sentiment about Korea causes capital inflows to the Korean stock market to fluctuate. Second, we find that global investor sentiment about...