Swarnali Ahmed
If the Fed Acts, How Do You React?
The Liftoff Effect on Capital Flows
IMF, 2015
What's inside?
What will happen to global capital flows as the Federal Reserve raises interest rates?
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Recommendation
Following the Federal Reserve’s December 2015 interest rate increase, market participants increasingly question what the rising rate environment will mean for global capital flows. Even when the Fed merely hinted in 2013 at the prospect of moving on interest rates, emerging market economies suffered an enormous capital exodus in the Taper Tantrum. This technical yet easily digestible analysis of rate hikes’ impacts from International Monetary Fund economist Swarnali Ahmed offers some clues as to whether history will repeat itself in 2016. getAbstract recommends this timely report to business and policy leaders.
Summary
About the Author
Swarnali Ahmed is an economist at the International Monetary Fund.
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