We are pleased to announce the release of the latest SEACEN Working Paper today, WP04/2022.
Using daily data on non-resident portfolio flows to emerging markets, a new SEACEN Working Paper finds that there is less interconnectedness in portfolio flows in emerging market (EM) economies during normal times. But, during times of uncertainty and stress, this interconnectedness in portfolio flows intensifies. More importantly, the paper finds that the broad EM US dollar exchange rate is a net transmitter of shocks to the EM economies’ debt and equity flows with the impact of such shocks hitting portfolio capital flows within at least a week.
Click here to read it in full.
