Capital Market Liberalization and Development
Joseph E. Stiglitz, Josť Antonio Ocampo
OUP Oxford, 2008 - Business & Economics - 375 pages
Capital market liberalization has been a key battle in the debate on globalization for much of the previous two decades. Many developing countries, often at the behest of international financial institutions such as the IMF, opened their capital accounts and liberalized their domestic financial markets as part of the wave of liberalization that characterized the 1980s and 1990s and in doing so exposed their economies to increased risk and volatility. Now with even the IMFacknowledging the risks inherent in capital market liberalization, the central intellectual battle over the effects of capital market liberalization has for the most part ended. Though this new understanding of the consequences of capital market liberalization is reshaping many policy discussions amongacademics and international institutions, ideological and vested interests remain.Critical policy debates also remain, such as how much government should intervene and what tools are available. Although capital market liberalization might not produce the promised benefits, many economists and policymakers still worry about the costs of intervention. Do these costs exceed the benefits? What are the best kinds of interventions, under what circumstances? To answer these questions, we have to understand why capital market liberalization has failed to enhance growth, why it hasresulted in greater instability, why the poor appear to have borne the greatest burden, and why the advocates of capital market liberalization were so wrong. Bringing together some of the leading researchers and practitioners in the field, this volume provides an analysis of both the risks associatedwith capital market liberalization and the alternative policy options available to enhance macroeconomic management.
What people are saying - Write a review
We haven't found any reviews in the usual places.
1 Capital Market Liberalization and Development
2 The Benefits and Risks of Financial Globalization
3 Capital Market Liberalization Globalization and the IMF
4 From the Boom in Capital Inflows to Financial Traps
5 Capital Market Liberalization and Poverty
Managing Capital Flows in Malaysia India and China
7 The Role of Preventative Capital Account Regulations
An Alternative to the IMFStyle Approach
Can They Effectively Limit the Impact of Capital Account Volatility?
10 The ProCyclical Impact of Basel II on Emerging Markets and its Political Economy
11 Consequences of Liberalizing Derivatives Markets
12 Do Global Standards and Codes Prevent Financial Crises?
Other editions - View all
Argentina argue Asian crisis assessment assets Basel Committee Basel II billion bonds boom borrowers Brazil capital account liberalization capital controls capital flight capital flows capital management techniques capital market liberalization capital requirements central bank Chile China Colombia contagion corporate costs country’s derivatives markets developing countries domestic financial East Asia economic effects emerging markets equity example exchange rate financial crises financial globalization financial institutions financial liberalization financial markets financial sector Financial Stability financial system fiscal foreign currency foreign exchange funds growth herding behavior implementation important incentives increase industrial countries inflows interest rate international capital international financial International Monetary Fund investors issues Latin America lending liquidity loans macroeconomic macroeconomic policies Malaysia measures monetary policy Ocampo outflows Paper percent period portfolio pro-cyclical problems prudential regulation reduce reserve requirements restrictions ringgit role ROSCs short-term speculative standards and codes Stiglitz Thailand trade World Bank