International Capital Flows in Calm and Turbulent Times

This book examines the impact of international capital flows on financial crises, focusing on key investors and proposing necessary reforms.

In International Capital Flows in Calm and Turbulent Times, the author provides a critical examination of the role that international capital flows have played in recent financial crises. Focusing on the late 1990s, the book delves into the types of lenders and investors that contributed to the onset and escalation of these crises. By concentrating on institutional investors and banks, the author offers a detailed analysis of the countries that were most severely impacted, particularly during the 1997-98 Asian financial crisis, as well as the situations in the Czech Republic and Brazil.

The text stands out for its thorough investigation into the characteristics of the investors and lenders involved, exploring their asset allocation strategies and the criteria guiding these decisions. It poses critical questions about the factors that drive significant shifts in investor sentiment and how contagion can affect not only countries but also various actors in the financial system. This analysis leads to a deeper understanding of the volatility associated with different types of capital flows.

Ultimately, International Capital Flows in Calm and Turbulent Times concludes with a discussion on the asymmetries present in the discussions and implementations of financial architecture. It proposes necessary reforms aimed at minimizing the likelihood of future crises, making it a valuable resource for policymakers and scholars alike.