Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203422
Authors: 
Patnaik, Ila
Pundit, Madhavi
Year of Publication: 
2019
Series/Report no.: 
ADB Economics Working Paper Series 581
Abstract: 
The taper tantrum episode induced a sudden outflow of capital from emerging markets back to the United States. This paper analyzes exchange market pressure in 93 developing and emerging market economies during this episode, drawing on recent methodological improvements in measuring exchange market pressure. We find that all economies in the sample that were integrated with global capital markets were heavily hit. Although popular discourse suggested that the extent of an economy's fragility depended on its macroeconomic fundamentals, we find these fundamentals did not have much of a role in determining the level of pressure on a currency.
Subjects: 
capital flows
exchange market pressure
financial shock
international trade and finance
macroeconomics
taper tantrum
JEL: 
E52
F31
F32
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/igo/
Document Type: 
Working Paper
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