Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299487 
Year of Publication: 
2023
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-1495
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
Despite an initial reversal of capital inflows, the COVID-19 pandemic resulted in relatively mild impacts on net capital flows to Emerging and Developing Economies. In contrast to previous crises, gross capital inflows offset residents' outflows, resulting in relatively stable net capital flows and modest current account adjustments. Liquid international markets, access to official resources, and sound fundamentals allowed for capital inflows, thus preventing the additional costs of widespread Sudden Stops during the pandemic. Still, we show a relatively simple model predicted Sudden Stops in net flows reasonably well in countries with weaker fundamentals.
Subjects: 
Sudden stops
Capital flows
Balance of Payments
Capital Account
COVID-19
Emerging and Developing Economies
JEL: 
F30
F32
F40
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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