When it Rains, it Pours: Procyclical Capital Flows and Macroeconomic Policies

# When it Rains, it Pours: Procyclical Capital Flows and Macroeconomic Policies > OpenAlex Metadata Hub · https://openalex.org/W2123261522 ## Bibliographic - **DOI:** 10.3386/w10780 - **Year:** 2004 - **Citations:** 1019 - **Open Access:** Yes (green) - **License:** — - **Source:** https://doi.org/10.3386/w10780 ## Authors - Graciela Kaminsky - Carmen Reinhart - Carlos Végh ## Abstract Based on a sample of 104 countries, we document four key stylized facts regarding the interaction between capital flows, fiscal policy, and monetary policy. First, net capital inflows are procyclical (i.e., external borrowing increases in good times and falls in bad times) in most OECD and developing countries. Second, fiscal policy is procyclical (i.e., government spending increases in good times and falls in bad times) for the majority of developing countries. Third, for emerging markets, monetary policy appears to be procyclical (i.e., policy rates are lowered in good times and raised in bad times). Fourth, in developing countries and particularly for emerging markets periods of capital inflows are associated with expansionary macroeconomic policies and periods of capital outflows with contractionary macroeconomic policies. In such countries, therefore, when it rains, it does indeed pour. ## Keywords Economics, Capital (architecture), Monetary economics, Capital flows, Keynesian economics, Labour economics, Market economy, Geography ## Concepts - Economics - Capital (architecture) - Monetary economics - Capital flows - Keynesian economics - Labour economics - Market economy - Geography - Archaeology - Liberalization --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “When it Rains, it Pours: Procyclical Capital Flows and Macroeconomic Policies” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): Based on a sample of 104 countries, we document four key stylized facts regarding the interaction between capital flows, fiscal policy, and monetary policy. First, net capital inflows are procyclical (i.e., external borrowing increases in good times and falls in bad times) in most OECD and developing countries. Second, fiscal policy is procyclical (i.e., government spending increases in good times and falls in bad times) for the majority of developing countries. Third, for emerging markets, monetary policy appears to be procyclical (i.e., policy rates are lowered in good times and raised in bad times). Fourth, in developing countries and particularly for emerging markets periods of capital inflows are associated with expansionary macroeconomic policies and periods of capital outflows with contractionary macroeconomic policies. In such countries, therefore, when it rains, it does indeed p… Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.