Capital Flows and Exchange Rate Management

International capital movements to the developing countries and their effects on them have attracted the attention of academicians and policy-makers. They have become all the more important in the contemporary environment of global financial instability and its effects on the developing economies. Policy-makers have to walk a tight rope between continuing the newly embraced liberal trade policies and the need to protect the domestic economy from external shocks. In this backdrop, the book provides a succinct discussion on capital flows and exchange rate management for these economies. It aims to present the reader with a quick recapitulation of the relevant theory as a toolkit helpful to untangle opinions from theoretical arguments.