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We study the optimal management of capital flows in a small open economy model with financial frictions and multiple policy instruments. The paper reports two m
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We show that “preemptive” capital flow management measures (CFM) can reduce emerging markets and developing countries’ (EMDE) external finance premia duri
Managing Capital Flows
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Managing Capital Flows provides analyses that can help policymakers develop a framework for managing capital flows that is consistent with prudent macroeconomic
Policy Responses to Capital Flows in Emerging Markets
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Staff Discussion Notes showcase the latest policy-related analysis and research being developed by individual IMF staff and are published to elicit comment and
Toward an Integrated Policy Framework
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Policymakers often face difficult tradeoffs in pursuing domestic and external stabilization objectives. The paper reflects staff’s work to advance the underst