This working paper was written by Reuven Glick (Federal Reserve Bank of San Francisco) and Michael Hutchison (University of California, Santa Cruz).In recent years China has faced an increasing trilemma—how to pursue an independent domestic monetary policy and limit exchange rate flexibility,...

This occasional paper was written by Stephen Grenville (Lowy Institute for International Policy, Australian National University and Asian Development Bank Institute).Capital flows were at the heart of the Asian Crisis of 1997-8. The inflows were too large before the crisis, and the reversals...

This working paper is written by Peter Hordahl (Bank for International Settlements) and Giorgio Valente (Hong Kong Institute for Monetary and Financial Research).We study the relationship between international bond flows and exchange rate returns for a panel of emerging market economies (EMEs)....

This working paper is written by J. Scott Davis (Federal Reserve Bank of Dallas), Michael B. Devereux (University of British Columbia) and Changhua Yu (Peking University).We model sudden stops in a small open economy as rare discrete events precipitated by increases in the world risk-free rate....