In fact, recent literature suggests that besides domestic pull factors in EMEs, push factors – monetary policy in advanced economies and global risk appetite – were important determinants of capital flows to EMEs.2 While the presence of cross-border spillovers from policy changes/announcements in advanced economies is well recorded in the literature, the more recent debate has been on the degree and kind of spillovers across EMEs and how these could be minimised.
All this using a comparative perspective and practical approach, with due consideration to Japan’s wide-ranging experience and utmost consideration of country-specific issues and circumstances. Needless to say, there are many wise people in this conference. Browsing through the line-up of the paper presentations, I could also see many timely, relevant, and innovative policy ideas that may emanate from such discussions.