Capital inflows to and outflows from emerging market economies (EME) have increased significantly since 2000. This rapid increase, accompanied by a sharp rise in volatility, has amplified the complexity of macroeconomic management in EME. While foreign capital provides additional financing for productive investment and offers avenues for risk diversification, unbridled flows exacerbate financial and macroeconomic instability. In this paper, we focus on the experience of six emerging Asian economies (EAE) in dealing with capital flows. Using quarterly data, we identify the waves of capital flows experienced by these EAE and the efficacy of the various policy measures taken. The policy choices include negotiating the trilemma (i.e. balancing the need for monetary policy autonomy, exchange rate flexibility and capital account openness), as per the demands of the macroeconomic situation. The paper also analyses the extent to which intervention in the foreign exchange market and imposition of short‐term capital flow management measures have aided countries to negotiate the trilemma. The efficacy of these responses have been varied across countries, implying that a judicious mix of these measures, along with improvement in financial and institutional development, is required to effectively counter the vagaries of capital flows.

中文翻译：

---

解决资本流动难题的替代工具：对某些亚洲经济体的研究

自2000年以来，新兴市场经济体（EME）的资本流入和流出量显着增加。这种快速增长，伴随着波动性的急剧上升，扩大了新兴市场经济体宏观经济管理的复杂性。尽管外国资本为生产性投资提供了额外的资金，并为分散风险提供了途径，但无限制的资金流动加剧了金融和宏观经济的不稳定。在本文中，我们重点介绍六个亚洲新兴经济体（EAE）处理资本流动的经验。使用季度数据，我们确定了这些EAE经历的资本流动浪潮以及所采取的各种政策措施的有效性。政策选择包括谈判两难处境（即平衡货币政策自主性，汇率灵活性和资本账户开放性的需要），根据宏观经济形势的要求。本文还分析了对外汇市场的干预和实施短期资本流动管理措施在多大程度上帮助各国进行了三方协商。这些应对措施的效果在各国之间有所不同，这意味着需要明智地将这些措施结合起来，同时改善金融和机构发展，以有效应对资本流动的变化。