Capital Account Regimes and the Developing Countries

Author: Gerald K. Helleiner
Publisher: Springer
ISBN: 9781349150717
Release Date: 2016-07-27
Genre: Business & Economics

An authoritative assessment of the debate over the role of volatile private capital flows and their impact on developing countries. The book outlines the long history of concern about these issues, going back to preparations for the Bretton Woods agreement. It assesses their acceleration with the growth of international capital and looks at key case studies from Latin America, Asia and Africa to assess the possibilities and problems for national and international policy responses.

Capital account and Counter cyclical Prudential Regulations in Developing Countries

Author: José Antonio Ocampo
Publisher: United Nations Publications
ISBN: 9211213924
Release Date: 2003
Genre: Business cycles

This paper examines the use of capital account regulations and the counter-cyclical prudential regulation of domestic financial intermediaries. It explains how these two finance policy tools are used to manage capital account volatility in developing countries.

Capital Account Liberalization Theoretical and Practical Aspects

Author: Barry J. Eichengreen
Publisher: International Monetary Fund
ISBN: 1557757771
Release Date: 1998-09-30
Genre: Business & Economics

Capital account liberalization - orderly, properly sequence, and befitting the individual circumstances of countries- is an inevitable step for all countries wishing to realize the benefits of the globalized economy. This paper reviews the theories behind capital account liberalization and examines the dangers associated with free capital flows. The authors conclude that the dangers can be limited through a combination of sound macroeconomic and prudential policies.

Putting the Cart Before the Horse Capital Account Liberalization and Exchange Rate Flexibility in China

Author: Mr. Eswar Prasad
Publisher: International Monetary Fund
ISBN: 9781452762449
Release Date: 2005-01-01
Genre: Business & Economics

This paper reviews the issues involved in moving towards greater exchange rate flexibility and capital account liberalization in China. A more flexible exchange rate regime would allow China to operate a more independent monetary policy, providing a useful buffer against domestic and external shocks. At the same time, weaknesses in China’s financial system suggest that capital account liberalization poses significant risks and should be a lower priority in the short term. This paper concludes that greater exchange rate flexibility is in China’s own interest and that, along with a more stable and robust financial system, it should be regarded as a prerequisite for undertaking a substantial liberalization of the capital account.

Ruling Capital

Author: Kevin P. Gallagher
Publisher: Cornell University Press
ISBN: 9780801454608
Release Date: 2014-12-18
Genre: Political Science

In Ruling Capital, Kevin P. Gallagher demonstrates how several emerging market and developing countries (EMDs) managed to reregulate cross-border financial flows in the wake of the global financial crisis, despite the political and economic difficulty of doing so at the national level. Gallagher also shows that some EMDs, particularly the BRICS coalition, were able to maintain or expand their sovereignty to regulate cross-border finance under global economic governance institutions. Gallagher combines econometric analysis with in-depth interviews with officials and interest groups in select emerging markets and policymakers at the International Monetary Fund, the World Trade Organization, and the G-20 to explain key characteristics of the global economy. Gallagher develops a theory of countervailing monetary power that shows how emerging markets can counter domestic and international opposition to the regulation of cross-border finance. Although many countries were able to exert countervailing monetary power in the wake of the crisis, such power was not sufficient to stem the magnitude of unstable financial flows that continue to plague the world economy. Drawing on this theory, Gallagher outlines the significant opportunities and obstacles to regulating cross-border finance in the twenty-first century.

The Consequences of the Global Financial Crisis

Author: Wyn Grant
Publisher: Oxford University Press
ISBN: 9780199641987
Release Date: 2012-05-24
Genre: Business & Economics

Systematically exploring the consequences of the global financial crisis, this text focuses primarily on the impact on policy and politics. It asks how governments responded to the challenges that the crisis has posed, and the policy and political impact of the combination of both the crisis itself and these responses.

Finance and Competitiveness in Developing Countries

Author: José María Fanelli
Publisher: IDRC
ISBN: 9781552502174
Release Date: 2002-01-01
Genre: Business & Economics

Using detailed trade and firm-level financial data, the authors demonstrate, for example, that while links between finance and competitiveness are strong, they are not uniform across sectors and countries. This book examines the link between finance and competitiveness at the macro and sectoral levels in seven different countries: Argentina, Brazil, India, Indonesia, the Philippines, South Africa, and Tunisia, and investigates key international issues, such as the evidence of the impact of exchange rate variability on trade, patterns in bank lending, and trade openness and development.

Private Capital Flows and Development

Author: Gerald K. Helleiner
Publisher: Commonwealth Secretariat
ISBN: 0850925398
Release Date: 1998
Genre: Capital movements

This paper considers the new forms and roles of private capital flows to developing countries in the 1990s and appropriate national and international policy responses to the problems and possibilities they create. Section 2 describes the growth of these flows in the 1990s, their role in development and some of their effects in recipient countries. Section 3 considers alternate capital account policies for developing countries. In section 4 the possibility of improved international arrangements is considered. Section 5 contains recommendations from the previous analysis.

Malaysia From Crisis to Recovery

Author: Intl Monetary Fund
Publisher: International Monetary Fund
ISBN: 1589060474
Release Date: 2001-08-27
Genre: Business & Economics

This publication takes stock of economic developments in Malaysia since the Asian economic crisis of 1997. It looks at the aspects of economic performance, policy and reform that contributed to the strong recovery. The individual papers include: a comparative review of policies and performance; potential output and inflation; challenges to fiscal management; capital controls in response to the Asian crisis; financial sector issues; corporate performance and reform.

Crisis and Recovery in Malaysia

Author: Prema-chandra Athukoralge
Publisher: Edward Elgar Publishing
ISBN: 178100966X
Release Date: 2001-01-01
Genre: Business & Economics

'Professor Athukorala tells a fascinating story of one of the most successful economies in the world economy in the last decades, from the inception of its liberalisation policy to its radical decision to pursue an independent recovery path after the 1997 Asian financial crisis. This is case-study economics at its best. The book is superbly organised, meticulously researched and clearly written; a treat for professional economists and policymakers alike.' - Tony Thirlwall, University of Kent, UK 'Malaysia is one of the great success stories of the last quarter of the twentieth century. From 1988 it had one of the highest growth rates in the world, and it managed to maintain ethnic peace in an undoubtedly difficult environment. Recently it has provided a major laboratory experiment of the use of capital controls at a time of crisis when a country is highly integrated in the world capital market. This excellent book presents the first careful analysis of the nature and effects of these controls, as well as providing a thorough background of how the Asian crisis played out in Malaysia.' - W.Max Corden, The Johns Hopkins University, US In the light of the Malaysian experience during the Asian financial crisis, this book examines the role of international capital mobility in making countries susceptible to financial crises and the use of capital controls as a crisis management tool. Malaysia provides an interesting case study of this subject given its significant capital market liberalisation prior to the onset of the crisis, and its fundamental shift in crisis management policy in September 1998. The prime focus of the book is on Malaysia's radical policy decision to pursue an independent recovery path, cut off from world markets by a system of capital control, as a viable alternative to the conventional market centred approach. The analysis suggests that, against the initial dire predictions of many economists, the capital controls have actually played a crucial supportive role in crisis management. Whether the controls have played a special role in delivering a superior recovery outcome in Malaysia compared to IMF-program countries remains a point of contention. However, there is strong evidence to suggest that this pragmatic policy choice was instrumental in achieving recovery, while minimising potential economic disruption and related social costs.

Implications of a Surge in Capital Inflows

Author: Jang-Yung Lee
Publisher: International Monetary Fund
ISBN: 9781455262595
Release Date: 1996-05-01
Genre: Business & Economics

This paper seeks to extend discussion of monetary policy instruments to the situation of a country faced with major capital inflows when the process of domestic financial liberalization is incomplete. It briefly summarizes the recent usage of traditional monetary instruments, discusses the practical limits to classic sterilization measures as well as the pros and cons of using other supplementary measures including tax-based controls on capital inflows. It also examines the efficacy of such measures in Chile, Colombia, Indonesia, Korea, Spain, and Thailand. The conclusion is that, for a time and as a transitional measure, a country may find it opportune to supplement the traditional instruments with certain “belt and braces” measures including, in some instances, indirect (tax-based) capital controls.

The West Bank and Gaza

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 9781455271900
Release Date: 2001-08-28
Genre: Business & Economics

This is the latest in a series of economic reports by staff economists in the IMF’s Middle Eastern Department. This book discusses the latest economic data coming out of the West Bank and Gaza Strip, with a particular emphasis on growing demographic concerns. The work is enhanced by the addition of numerous data tables and graphs, which extensively analyze economic trends in the region.

Financial Globalization and the Emerging Economies

Author: José Antonio Ocampo
Publisher: United Nations Publications
ISBN: 9211212650
Release Date: 2000
Genre: Capital market

Financial globalisation has been a dynamic element in recent years, with large capital flows to a number of emerging economies in Latin America and Asia often being followed by financial crises.