Policy makers in many emerging markets (EMs) have had to cope with a resurgence of capital flows, and this has led to challenges in macroeconomic management and pressures in asset markets. The latest rise in inflows to EMs reflects both cyclical and structural factors. The multi-speed nature of the recovery from the global financial crisis has led to a cyclical widening of both yield and growth differentials between advanced economies and EMs. Structural factors suggest that capital flows to EMs are likely to be sustained over the long term, albeit with periods of heightened volatility. While recipient countries have used macroeconomic policies to deal with the recent surge in inflows, many countries have also employed more direct measures. These capital flow management measures (CFMs) have been motivated by concerns about overheating, external competitiveness, financial stability, and sterilization costs of reserve accumulation, among other factors.