10. Capital flows and emerging market economies since the global financial crisis

The chapter first examines the metamorphosis of finance and of capital flows after the GFC, up to the shock to capital flows to EMEs during the 2020–2021 coronavirus crisis. [...] 10.2.2 European Banks at the Core of Both Surge and Pause of the Wave of Financial Globalization since the 1990s European banks have been at the core of both the surge and pause of the wave of financial globalization since the 1990s. [...] 10.2.3 Morphing Financial Intermediation in Advanced Economies behind the Metamorphosis of Capital Flows The metamorphosis of global capital flows accompanied the evolution of mar- ket-based intermediation in advanced economies, after the global financial crisis of 2008, when the weight of NBFIs in the financial system has risen. [...] In fact, the diversity in the composition of the non-resident flows to EMEs excluding China in 2021 illustrates the diversity of country-specific determinants of capital flows (IMF, 2021). [...] In the experience of the negative financial effect of the appreciation of the dollar in May 2018, it was not by chance that Argentina and Turkey were captured by the storm, because of their particular vulnerability to dollar fluctuations.