**Table 9: Sudden Stops of Capital flows and Policy Tools**

||(1)<br>|(2)<br>**Capital Flo**|(3)<br>**w Measure**<br>Non-|(4)<br>**s on**<br>Non-|(5)|(6)|(7)|(8)<br>Real|(9)|
|---|---|---|---|---|---|---|---|---|---|
||Resident<br>Inflows|Resident<br>Outflows|Resident<br>Inflows|Resident<br>Outflows|Interest<br>Rates|Macroprud<br>Regulation|Exchange<br>Rates|<br>effective<br>exch rate|FX<br>Reserves|
|Sudden stops, lag|-0.045|-0.014|-0.053|-0.038|-0.472***|-0.295**|0.054***|-0.033***|-0.100***|
||[0.97]|[0.56]|[1.63]|[0.93]|[5.73]|[2.19]|[3.47]|[2.84]|[3.91]|
|Constant|0.022***|0.042***|0.016***|0.009***|-0.062***|0.065***|-0.003***|0.001***|0.004***|
||[14.70]|[53.80]|[16.04]|[6.65]|[25.14]|[15.94]|[5.26]|[2.77]|[4.32]|
|Observations|2,164|2,164|2,164|2,164|1,601|1,356|2,102|1,870|2,126|
|R-squared|0.001|0.000|0.002|0.002|0.012|0.012|0.012|0.008|0.013|
|# of countries|43|43|43|43|35|27|42|34|43|

_Notes_ : Dependent variables in Columns 1-4 are indices of CFM on respective type of flow. The indices take value of -1/0/1 (Tightening/no change/Easing). The dependent variable in Column 5 is a binary variable of policy rate changes. A value of -1/1 indicates a reduction/increase in policy rates by at least 25bps over previous quarter. Dependent variable in Column 6 is a measure of macroprudential regulation taken from Cerruti et al. (2017). A value of 1 indicates a tightening of restrictions and a value of -1 an easing. The dependent variables in Column 7-9 are the cyclical components of log nominal exchange rates, log real effective exchange rate and log foreign reserves, respectively. The RHS variable is a dummy that indicates sudden stop periods. Regressions include country fixed effects. Robust t statistics are in parenthesis. *, ** and *** indicate that coefficients are significant at the 10, 5 and 1 percent level.

**Table 10: Sudden Surges of Capital flows and Policy Tools**

||(1)<br>|(2)<br>**Capital Flow**<br>|(3)<br>**Measures**<br>Non-|(4)<br>**on**<br>Non-|(5)<br>|(6)<br>|(7)<br><br>|(8)<br>Real|(9)<br>|
|---|---|---|---|---|---|---|---|---|---|
||Resident<br>Inflows|Resident<br>Outflows|Resident<br>Inflows|Resident<br>Outflows|Interest<br>Rates|Macroprudent<br>al Regulation|i<br>Exchange<br>Rates|effective<br>exch rate|FX<br>Reserves|
|Surge, lagged|0.003|0.046**|-0.017|-0.002|0.357***|0.035|-0.044***|0.022***|0.048***|
||[0.18]|[2.52]|[0.96]|[0.11]|[4.63]|[0.94]|[5.80]|[3.15]|[4.28]|
|Constant|0.020***|0.037***|0.016***|0.008***|-0.114***|0.052***|0.004***|-0.002***|-0.005***|
||[11.14]|[20.42]|[9.30]|[4.86]|[14.04]|[11.59]|[4.64]|[3.19]|[3.98]|
|Observations|2,164|2,164|2,164|2,164|1,601|1,356|2,102|1,870|2,126|
|R-squared|0.000|0.002|0.001|0.000|0.023|0.001|0.023|0.009|0.009|
|# of countries|43|43|43|43|35|27|42|34|43|

_Notes_ : Dependent variables in Columns 1-4 are indices of CFM on respective type of flow. The indices take value of -1/0/1 (Tightening/no change/Easing). The dependent variable in Column 5 is a binary variable of policy rate changes. A value of -1/1 indicates a reduction/increase in policy rates by at least 25bps over previous quarter. Dependent variable in Column 6 is a measure of macroprudential regulation taken from Cerruti et al. (2017). A value of 1 indicates a tightening of restrictions and a value of -1 an easing. The dependent variables in Column 7-9 are the cyclical components of log nominal exchange rates, log real effective exchange rate and log foreign reserves, respectively. The RHS variable is a dummy that indicates surge periods. The regressions include country fixed effects. Robust t statistics are in parenthesis. *, ** and *** indicate that the coefficients are significant at the 10, 5 and 1 percent level.

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