Chapter

Introduction

Sebastian Edwards and Márcio G. P. Garcia

in Financial Markets Volatility and Performance in Emerging Markets

Published by University of Chicago Press

Published in print March 2008 | ISBN: 9780226184951
Published online February 2013 | e-ISBN: 9780226185040 | DOI: http://dx.doi.org/10.7208/chicago/9780226185040.003.0001
Introduction

More Like This

Show all results sharing this subject:

  • Macroeconomics and Monetary Economics

GO

Show Summary Details

Preview

During the last few years, globalization has been under attack from different quarters. Many critics—including some prominent economists—have centered their analyses on the effects of free capital mobility. It has been argued, for example, that unrestricted capital mobility generates financial and macroeconomic instability in the emerging markets. In his critique of the U.S. Treasury and the International Monetary Fund, Nobel Laureate Joseph Stiglitz (2002) has argued that pressuring emerging and transition countries to relax controls on capital mobility during the 1990s was highly irresponsible. This book, which explores different aspects of capital mobility and controls, focusing on whether capital controls help reduce macroeconomic volatility, recognizes that the extent of capital mobility is not an entirely exogenous variable and that it depends on economic developments. It also looks at sudden stops of capital inflows, current account reversals, capital markets regulation, and dollarization. The book examines the intertemporal feedbacks between disaggregated measures of trade and financial flows in developing countries.

Keywords: capital mobility; capital controls; emerging markets; capital inflows; current account reversals; capital markets; dollarization; macroeconomic volatility

Chapter.  3339 words. 

Subjects: Macroeconomics and Monetary Economics

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.