LARGE CAPITAL INFLOWS TO EMERGING MARKET ECONOMIES: POLICY RESPONSES

Abstract

The article examines the experiences of a number of emerging countries in co-
ping with capital inflows. It analyzes the mechanism of regulation the large private
capital inflows to emerging economies. It describes the nature of the inflows, their
implications for macroeconomic and financial stability, and the policy responses
used to cope with them. The actions that help to increase the absorption capacity and
resilience of the economies and financial systems to the risks associated with the
inflows are determined in the article as well.
Key words: private capital, inflow, emerging countries, policy responses, ex-
perience, effectiveness.