Publication:
Tinker, Taper, QE, Bye? The Effect of Quantitative Easing on Financial Flows to Developing Countries

Simple item page
dc.contributor.authorLim, Jamus Jerome
dc.contributor.authorMohapatra, Sanket
dc.contributor.authorStocker, Marc
dc.date.accessioned2014-04-10T20:21:07Z
dc.date.available2014-04-10T20:21:07Z
dc.date.issued2014-03
dc.description.abstractThis paper examines gross financial inflows to developing countries between 2000 and 2013, with a particular focus on the potential effects of quantitative easing policies in the United States and other high-income countries. The paper finds evidence for potential transmission of quantitative easing along observable liquidity, portfolio balancing, and confidence channels. Moreover, quantitative easing had an additional effect over and above these observable channels, which the paper argues cannot be attributed to either market expectations or changes in the structural relationships between inflows and observable fundamentals. The baseline estimates place the lower bound of the effect of quantitative easing at around 5 percent of gross inflows (for the average developing economy), which suggests that of the 62 percent increase in inflows during 2009-13 related to changing global monetary conditions, at least 13 percent of this was attributable to quantitative easing. The paper also finds evidence of heterogeneity among different types of flows; portfolio (especially bond) flows tend to be more sensitive than foreign direct investment to our measured effects from quantitative easing. Finally, the paper performs simulations that explore the potential effects of the withdrawal of quantitative easing on financial flows to developing countries.en
dc.identifierhttp://documents.worldbank.org/curated/en/2014/03/19303789/tinker-taper-qe-bye-effect-quantitative-easing-financial-flows-developing-countries
dc.identifier.doi10.1596/1813-9450-6820
dc.identifier.urihttps://hdl.handle.net/10986/17733
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6820
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectALTERNATIVE INVESTMENTS
dc.subjectARBITRAGES
dc.subjectASSET CLASSES
dc.subjectASSET PRICE
dc.subjectASSET PURCHASE
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE OF PAYMENTS FLOWS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK ASSET
dc.subjectBANK LENDING
dc.subjectBANK LOANS
dc.subjectBASIS POINT
dc.subjectBASIS POINTS
dc.subjectBENCHMARK
dc.subjectBOND
dc.subjectBOND FLOWS
dc.subjectBOND FUNDS
dc.subjectBORROWING COSTS
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MOBILITY
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANK ASSET
dc.subjectCENTRAL BANKS
dc.subjectCHECKS
dc.subjectCONTROL VARIABLES
dc.subjectCOST OF CAPITAL
dc.subjectCOUNTRY FIXED EFFECTS
dc.subjectCOUNTRY RISK
dc.subjectCOVARIANCE MATRIX
dc.subjectCREDIBILITY
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAP
dc.subjectCROSS-BORDER CAPITAL
dc.subjectCUMULATIVE INFLOWS
dc.subjectCURRENCY
dc.subjectCURVE YIELD
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEFLATION
dc.subjectDEPENDENT VARIABLE
dc.subjectDEPRECIATIONS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPING ECONOMIES
dc.subjectDEVELOPING ECONOMY
dc.subjectDEVELOPMENT POLICY
dc.subjectDUMMY VARIABLES
dc.subjectECONOMETRIC MODEL
dc.subjectECONOMETRICS
dc.subjectECONOMIC CONDITIONS
dc.subjectECONOMIC ENVIRONMENTS
dc.subjectECONOMIC RESEARCH
dc.subjectELASTICITY
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEQUITIES
dc.subjectEQUITY FLOWS
dc.subjectEQUITY MARKET
dc.subjectEQUITY MARKETS
dc.subjectEQUITY PRICES
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE APPRECIATION
dc.subjectEXCHANGE RATES
dc.subjectEXPANSIONARY MONETARY POLICY
dc.subjectEXPLANATORY VARIABLES
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE SYSTEM
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CAPITAL
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FLOW
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INFLOWS
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFISCAL POLICY
dc.subjectFIXED EFFECT
dc.subjectFIXED INCOME
dc.subjectFORECASTS
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN DIRECT INVESTORS
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectFOREIGN HOLDINGS
dc.subjectFORWARD RATE
dc.subjectFUTURE RESEARCH
dc.subjectFUTURES
dc.subjectFUTURES CONTRACT
dc.subjectGDP
dc.subjectGLOBAL CAPITAL
dc.subjectGLOBAL CAPITAL FLOWS
dc.subjectGLOBAL ECONOMIC PROSPECTS
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBAL FUND
dc.subjectGOVERNMENT BONDS
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHIGH-INCOME COUNTRIES
dc.subjectINCOME INSTRUMENTS
dc.subjectINDICATOR VARIABLE
dc.subjectINDICATOR VARIABLES
dc.subjectINFLATION
dc.subjectINFLATION DIFFERENTIAL
dc.subjectINFLATION DIFFERENTIALS
dc.subjectINSTITUTIONAL INVESTOR
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE DIFFERENTIAL
dc.subjectINTEREST RATE DIFFERENTIALS
dc.subjectINTEREST RATE SPREAD
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANK LENDING
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL EQUITY
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL FINANCIAL STATISTICS
dc.subjectINTERNATIONAL SETTLEMENTS
dc.subjectINVESTABLE FUNDS
dc.subjectINVESTING
dc.subjectINVESTMENT ACTIVITY
dc.subjectINVESTMENT ALTERNATIVE
dc.subjectLIQUID ASSETS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY PREMIUM
dc.subjectLOAN
dc.subjectLONG BONDS
dc.subjectLONG-TERM ASSETS
dc.subjectLONG-TERM COST
dc.subjectLONG-TERM INTEREST
dc.subjectLONG-TERM INTEREST RATE
dc.subjectLONG-TERM YIELDS
dc.subjectM2
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMACROECONOMICS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET EXPECTATIONS
dc.subjectMARKET RETURNS
dc.subjectMONETARY CONDITIONS
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectMONEY SUPPLY
dc.subjectMORTGAGE
dc.subjectMORTGAGE-BACKED SECURITIES
dc.subjectMUTUAL FUNDS
dc.subjectNOMINAL INTEREST RATE
dc.subjectNOMINAL INTEREST RATES
dc.subjectOPPORTUNITY COST
dc.subjectOUTPUT
dc.subjectPOLITICAL ECONOMY
dc.subjectPOLITICAL RISK
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO CAPITAL
dc.subjectPORTFOLIO FLOW
dc.subjectPORTFOLIO FLOWS
dc.subjectPORTFOLIOS
dc.subjectPOST-CRISIS PERIOD
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE CREDIT
dc.subjectPUSH FACTORS
dc.subjectRAPID EXPANSION
dc.subjectREAL EFFECTIVE EXCHANGE RATES
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectREAL INTEREST
dc.subjectREAL INTEREST RATE
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISKY ASSETS
dc.subjectROBUSTNESS CHECK
dc.subjectROBUSTNESS CHECKS
dc.subjectSECONDARY MARKET
dc.subjectSECONDARY MARKET TRANSACTIONS
dc.subjectSECONDARY MARKETS
dc.subjectSECURITIES
dc.subjectSECURITIES MARKET
dc.subjectSHORT-TERM BILLS
dc.subjectSHORT-TERM INTEREST RATE
dc.subjectSHORT-TERM INTEREST RATES
dc.subjectSHORT-TERM RATES
dc.subjectSLOWDOWN
dc.subjectSTANDARD DEVIATION
dc.subjectSTANDARD DEVIATIONS
dc.subjectSTOCK PRICES
dc.subjectT-BILL
dc.subjectT-BILL RATE
dc.subjectTOTAL MARKET
dc.subjectTRADE CREDIT
dc.subjectTREASURIES
dc.subjectTREASURY
dc.subjectTREASURY BILL
dc.subjectTREASURY BILL RATE
dc.subjectTREASURY BILLS
dc.subjectTREASURY NOTE
dc.subjectTREASURY YIELDS
dc.subjectUNCERTAINTY
dc.subjectUNDERESTIMATES
dc.subjectVARIANCE-COVARIANCE MATRIX
dc.subjectVOLATILITY
dc.subjectWEAK ASSET
dc.subjectWITHDRAWAL
dc.subjectWORLD DEVELOPMENT INDICATORS
dc.subjectWORLD ECONOMY
dc.subjectWORLD EQUITY
dc.subjectWORLD EQUITY MARKETS
dc.subjectWORLD MARKET
dc.subjectWORLD MARKET INTEGRATION
dc.subjectYIELD CURVE
dc.subjectYIELD SPREADS
dc.titleTinker, Taper, QE, Bye? The Effect of Quantitative Easing on Financial Flows to Developing Countriesen
dspace.entity.typePublication
okr.crossref.titleTinker, Taper, QE, Bye? The Effect of Quantitative Easing on Financial Flows to Developing Countries
okr.date.disclosure2014-03-01
okr.date.doiregistration2025-04-10T11:33:37.498517Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2014/03/19303789/tinker-taper-qe-bye-effect-quantitative-easing-financial-flows-developing-countries
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid570101468341335746
okr.identifier.doi10.1596/1813-9450-6820
okr.identifier.externaldocumentum000158349_20140327114545
okr.identifier.internaldocumentum19303789
okr.identifier.reportWPS6820
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2014/03/27/000158349_20140327114545/Rendered/PDF/WPS6820.pdfen
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicEconomic Theory and Research
okr.topicFinance and Financial Sector Development::Mutual Funds
okr.topicPrivate Sector Development::Emerging Markets
okr.topicMacroeconomics and Economic Growth
okr.unitGlobal Macroeconomics Unit, Development Prospects Group (DECPG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS6820.pdf
Size:
1.45 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS6820.txt
Size:
158.98 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers