During the past five years or so, most East Asian economies including the Philippines experienced a rising level of foreign exchange reserves and rapidly appreciating currencies both in nominal and real terms. One cause has been the resurgence of capital flows, which makes the issue of how to...

This paper reviews policies taken to address capital flows in Malaysia from 1999 to 2007. In the face of increasingly volatile capital flows and their repercussions on the domestic economy, the monetary authority needs to pursue active monitoring and intervention. Moreover, having a resilient...

This paper describes Indonesia’s experiences in managing foreign capital flows after the 1997 financial crisis. It highlights several differences in types and magnitude of capital flows from the pre-crisis period and reviews the determinants of capital flows including government policy and...

The impressive recovery of Asia from the severe 1997–98 financial crisis has been achieved through, among other things, more flexible exchange rates, remarkable reductions of double mismatches in the banking systems, current account surpluses, increasing volumes of foreign direct investment,...

This paper surveys the nature of capital inflows into Asia since the peak of the US dollar in the first quarter of 2002 and the policy responses to them. Portfolio equity flows have become more volatile and more responsive to global equity market developments. Inflows into local bond markets...