Volumen 29, Serie Banca Central: Credibility of Emerging Markets, Foreign Investors’ Risk Perceptions, and Capital Flows


Emerging market economies (EMEs) are constantly exposed to shocks that originate in world capital markets, posing serious challenges to policymakers. By dealing with these shocks —Covid-19 representing the most recent event— several lessons have been learned in terms of the ways they propagate as well as the various tradeoffs of policy responses available. Credibility and foreign investors’ risk perceptions are central when analyzing these episodes, and they are closely associated with the design of monetary and fiscal frameworks, as well as the conduct of unconventional policies. This volume contributes to the study of these issues by focusing on the understanding of the array of challenges and policy options for EMEs’ policymakers for short-run stabilization purposes as well as longer-term issues that should be on their radars, bringing together a multinational group of distinguished scholars to discuss the latest research findings.


Álvaro Aguirre
Andrés Fernández
Sebnem Kalemli-Özcan



Credibility of Emerging Markets, Foreign Investors’ Risk Perceptions, and Capital Flows offers an in-depth compilation of scholarly papers elucidating the intricacies of risk and capital flows. Authored by accomplished experts, this insightful work is highly recommended for those keen to understand the latest global finance and policy trends in emerging economies.

Laura Alfaro
Warren Alpert Professor of Business Administration, Harvard Business School

This volume gathers nine excellent papers confronting challenges, including the Global Financial Crisis, the Covid pandemic, volatility in commodity prices, and financial globalization, that the XXI century has presented for emerging economies. The papers discuss state-of-the-art theory and apply recent empirical techniques to assess its applicability, thus providing a solid foundation for the evaluation of policy responses and proposals for reform. Reading these contributions will be highly useful to remain up to date in topical debates on emerging economies.

Roberto Chang
Distinguished Professor of Economics, Rutgers University

This collection of articles provides an impressive overview of open economy macro issues, especially relevant for emerging markets, written by world class authors. I highly recommend the book for any reader interested in the frontier of research and policy on capital flows, macro policy, and financial stability.

Tobias Adrian
Chief Financial Counselor, International Monetary Fund