International Financial Flows and Macro-Financial Risk in SSA

We examine international financial flows to SSA, with a particular focus on the implications for macro-financial risk exposures. While gross and net international financial inflows have increased in recent years, these patterns should be understood in the context of a more robust international balance sheet and a shift in the risk composition of inflows. Over 2001?13, we do not find any evidence of a correlation between international financial inflows and some primary macro-financial risk proxies. Still, the growth in inflows raises the importance of designing and implementing a robust macro-financial stability policy framework.