Update: WP2/2022
Posted on 21 March 2024

Update on SEACEN Working Paper 02/2022 co-authored by Daniel Carvalho and Dr. Rogelio Mercado Jr.

A revised version of SEACEN Working Paper No. 02/2022 authored by Daniel Carvalho, Etienne Lepers, and SEACEN's Rogelio Mercado, Jr. , has been accepted for publication at Open Economies Review. Using novel datasets on both sectoral flows and policy measures, this paper underscores the importance of a granular sectoral approach in identifying the full range of connections between capital flows and credit growth, as well as the appropriate policy response. While macroprudential and foreign currency-based measures are better suited to mitigate the impact of banking sector flows, capital controls appear to lessen the impact of inflows to non-financial corporates and other financial corporates.

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