IIF Authors

Status: Will be live at 10/07/2014 15:45

2014 PCG Report on Implementation of the Principles

The global economic and ?nancial environment over the past year has continued to be supportive of net private capital in?ows to emerging markets and of sovereign bond markets in emerging market and developing economies. Following the temporary turbulence associated with the initial announcement in May 2013 of a pending tapering of quantitative easing by the U.S. Federal Reserve, the increase in interest rates in advanced countries was reversed and the upward trend in net private capital ?ows to emerging markets resumed. Capital ?ows were temporarily disrupted again in the ?rst half of 2014 by developments in vulnerable emerging markets and geopolitical developments in Ukraine/Russia. However, the continued abundant global liquidity and the associated search for yield continued to sustain net capital ?ows to emerging markets.