**Table 7: Domestic Business Cycles and Policy Tools**

||(1)|(2)<br>**Capital Flo**|(3)<br>**w Measures**<br>Non-|(4)<br>**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|Macropru<br>Regulation|Exchange<br>Rate|<br>effective<br>exch rate|FX<br>Reserves|
|Cyclical comp of|0.145|0.291|-0.113|0.043|6.742***|1.421**|-1.322***|0.598***|1.702***|
|GDP|[0.76]|[0.81]|[0.68]|[0.35]|[4.12]|[2.14]|[6.01]|[5.20]|[6.41]|
|Constant|0.024***|0.047***|0.020***|0.009***|-0.064***|0.074***|-0.000***|0.001***|0.001***|
||[209.63]|[217.35]|[199.6]|[114.63]|[79.22]|[6667]|[2.97]|[7.30]|[5.68]|
|Observations|2596|2596|2596|2596|1849|1588|2484|1995|2498|
|R-squared|0.000|0.001|0.000|0.000|0.052|0.006|0.145|0.063|0.105|
|# of countries|42|42|42|42|35|28|41|31|42|

_Notes_ : The RHS variable is the cyclical component of domestic real GDP. 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. Robust t statistics are in parenthesis. *, ** and *** indicate that the coefficients are significant at the 10, 5 and 1 percent level.

**Table 8: Domestic Credit Cycles and Policy Tools**

||(1)<br>**C**|(2)<br>**apital Flow**|(3)<br>**Measures**<br>Non-|(4)<br>**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|Macropru<br>Regulation|Exchange<br>Rates|<br>effective<br>exch rate|FX<br>Reserves|
|Cyclical comp. of credit|-0.055|-0.493|-0.163|-0.065|12.760***|0.240|-1.132**|0.008|0.678|
||[0.14]|[1.24]|[0.72]|[0.36]|[5.06]|[0.19]|[2.10]|[0.03]|[0.76]|
|Constant|0.025***|0.043***|0.021***|0.009***|-0.087***|0.077***|-0.001***|0.000***|0.000**|
||[381.47]|[633.37]|[536.56]|[308.50]|[457.24]|[327.91]|[14.81]|[2.76]|[2.64]|
|Observations|2874|2874|2874|2874|2067|1560|2844|2331|2861|
|R-squared|0.000|0.000|0.000|0.000|0.026|0.000|0.022|0.000|0.002|
|# of countries|43|43|43|43|36|26|43|35|43|

_Notes_ : The RHS variable is the cyclical component of domestic real credit. 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. Regressions include country fixed effects. Robust t statistics are in parenthesis. *, ** and *** indicate that the coefficients are significant at 10, 5 and 1 percent level.

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