Submission deadline: 22 January 2018

Call for Papers

Joint ECB-Emerging Markets Group (EMG) Workshop on International Capital Flows: Drivers and Policy Responses

3 and 4 May 2018
Cass Business School
City, University of London

Keynote speakers

Gian Maria Milesi-Ferretti   Frank Warnock
Deputy Director
Research Department
International Monetary Fund
  James C. Wheat Jr Professor
of Business Administration
Area Coordinator
Global Economies and Markets
Darden School of Business
University of Virginia

The global financial crisis saw an unprecedented collapse in international capital flows after years of rapid increase reflecting the rising globalisation over the previous decade. Global capital flows increased rapidly from less than 7% of world GDP in 1998 to over 20% in 2007, but suffered large reversals in late 2008, with bank credit flows being hit the hardest due to their sensitivity to risk perception. However, the retrenchment of capital flows in emerging economies was short-lived compared to that experienced in developed economies (Milesi-Ferretti and Tille, 2011). Capital flows to emerging economies remained highly sensitive to monetary policy in developed economies and subject to bouts of volatility. The taper talk by the Fed triggered a new sudden stop in capital flows in 2013, compounded by the stock market turbulence in China in 2015-16. Currently, against the background of low global financial volatility and low yields, non-residents have returned to investing in emerging markets in search of higher returns. At the same time, the increasing liberalisation of private flows in emerging economies has caused a surge in emerging market capital outflows by residents. This volatility of capital flows has motivated us to organise this workshop in order to deepen our knowledge of the factors that shape the constellation of capital flows to emerging markets and their asset price and credit cycles, including the range of policies available to face external shocks.

On behalf of the Emerging Markets Group (EMG), Cass Business School, City, University of London and the European Central Bank (ECB), the scientific committee invites submissions to an EMG workshop on “International Capital Flows: Drivers and Policy Responses” and in particular on the following issues:

  • Capital flows to emerging markets and the role of global and idiosyncratic factors in driving banking, portfolio flows and asset prices in emerging markets
  • The impact of policy normalisation in developed economies on liquidity and credit conditions in emerging markets
  • The impact of policy normalisation in developed economies on financial and currency markets in emerging markets
  • The optimal monetary, exchange rate and macroprudential policies to buffer external shocks in emerging markets
  • The impact caused by capital flights from emerging markets
  • The risks and vulnerabilities in the financing of sovereign and corporate borrowers in emerging markets, with special reference to the implications of the development of local currency bond markets
  • The role of global banks and global institutional investors in emerging markets versus emerging national champions

Submission of papers

Completed papers should be submitted in PDF format to EMGECBworkshopMay2018@city.ac.uk.

The deadline for paper submission is 22 January 2018. Authors of papers accepted for the workshop will be notified by the end of February 2018.

The programme will include 16 papers. There will be a discussant for each paper.

Registration is free and participants, apart from keynote speakers, are expected to cover their own travel and accommodation costs.

Conference organisers

  • Kate Phylaktis (Cass Business School)
  • Livio Stracca (ECB)
  • Maurizio Habib (ECB)

Scientific Committee

  • Menzie Chinn (University of Wisconsin)
  • Ana-Maria Fuertes (Cass Business School)
  • Maurizio Habib (ECB)
  • Ian Marsh (Cass Business School)
  • Richard Payne (Cass Business School)
  • Kate Phylaktis (Cass Business School)
  • Livio Stracca (ECB)