Short-Term Capital Flows and Economic Crises (Wider Studies in Development Economics)

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Published by Oxford University Press, USA .

Written in English

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Book details

ContributionsStephany Griffith-Jones (Editor), Manuel F. Montes (Editor), Anwar Nasution (Editor)
The Physical Object
Number of Pages328
ID Numbers
Open LibraryOL7399417M
ISBN 10019829686X
ISBN 109780198296867

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Buy Short-Term Capital Flows and Economic Crises (WIDER Studies in Development Economics): Read Books Reviews - : Short-Term Capital Flows and Economic Crises (WIDER Studies in Development Economics) eBook: Stephany Griffith-Jones, Manuel F. Montes, Anwar Nasution: Kindle Store.

Written by senior policy-makers and academics, the contributions to this volume examine in depth the macroeconomic and other policy dilemmas confronting public authorities in the emerging economies as they deal with short-term capital movements, especially in the period before the outbreak of these : World Institute for Development Economic.

Short-Term Capital Flows and Economic Crises Edited by Stephany Griffith-Jones, Manuel F. Montes, and Anwar Nasution WIDER Studies in Development Economics A mix of analytical approaches and case studies of Mexico beforeChile, South Africa, Korea.

Book Short-Term Capital Flows and Economic Crises The currency crises that engulfed East Asian economies in and Mexico in - and their high development costs - raise a serious concern about the net benefits for developing countries of large flows of potentially reversible short-term international capital.

Written by senior policy-makers and academics, the contributions to this volume examine in depth the macroeconomic and other policy dilemmas confronting public authorities in the emerging economies as they deal with short-term capital movements, especially in the period before the outbreak of these crises.

Book Chapter Short-Term Capital Flows, the Real Economy, and Income Distribution in Developing Countries Developing countries have access to international savings that would enable the raising of the rate of investment.

This book examines in depth the macroeconomic and other policy dilemmas confronting public authorities in the emerging economies as they deal with short-term capital movements, especially in the period before the outbreak of these crises.

The studies are based on comparative case studies of key emerging economies. The model also specifies the circumstances under which short-term debt accumulation is socially excessive. The empirical analysis shows that the short-term debt to reserves ratio is a robust predictor of financial crises, and that greater short-term exposure is associated with more severe crises when capital flows by: Book Description The increasing capital flows in the emerging markets and developed countries have raised various concerns worldwide.

One main concern is the impact of the sharp decline of capital flows – so-called sudden stops – on financial markets and the stability of banking systems and the economy.

Currencies, Capital Flows and Crises book. A Post Keynesian Analysis of Exchange Rate Determination. By John T. Harvey. Edition 1st Edition. First Published eBook Published 13 January including not only exchange rates but also world financial crises. Short-Term Capital Flows and Economic Crises book In the book, the traditional approach is reviewed and critiqued and the.

The contributions to this volume examine the macroeconomic and policy dilemmas confronting public authorities in the emerging economies as they deal with short-term capital movements, especially in the period before the outbreak of currency crises such as those in Mexico and East Asia.

The implications of capital mobility for growth and stability are some of the most contentious and least understood contemporary issues in economics. In this book, Barry Eichengreen discusses historical, theoretical, empirical, and policy aspects of the effects, both positive and negative, of capital flows.

He focuses on the connections between capital flows and crises as well as on those. The contributors to this volume examine the macroeconomic and policy dilemmas confronting public authorities in the emerging economies as they deal with short-term capital movements, especially in the period before the outbreak of currency crises.

The book Capital Flows and Financial Crises contains nine scholarly es says written by authors such as Barry Eichengreen, Albert Fishlow, Carmen M.

Reinhart, Vincent Raymond Reinhart, and Jeffrey. The model also specifies the circumstances under which short-term debt accumulation is socially excessive. The empirical analysis shows that the short-term debt to reserves ratio is a robust predictor of financial crises, and that greater short-term exposure is associated with more severe crises when capital flows reverse.

Capital flows to the developing economies have long displayed a boom-and-bust pattern. Rarely has the cycle turned as abruptly as it did in the s, however: surges in lending were followed by the Mexican peso crisis of and the sudden collapse of currencies in Asia in Reviews: 3.

In economics, hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts.

These speculative capital flows are called "hot money" because they can move very quickly in and out of markets, potentially leading to market instability. Capital Flows and Crises December 16 Capital Flows and Crises* Address by Dr S.A.

Grenville, Deputy Governor, to the Credit Suisse First Boston Australia Conference, ‘The Global Financial System – The Risks of Closure’, Sydney, 13 November There are many things that went wrong for the countries caught up in the Asian crisis of. Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital measures may be economy-wide, sector-specific (usually the financial sector), or industry specific (for example, "strategic" industries).

As part of the financial crisis incapital flows to real estate investments slowed significantly, with sales failing to meet pre-crisis levels until As ofU.S. capital flows saw. 2 Short-Term Capital Flows, the Real Economy, and Income Distribution in Developing Countries; 3 The Boom of Portfolio Flows to ‘Emerging Markets’ and its Regulatory Implications; 4 Korea’s Management of Capital Flows in the s; 5 The Southeast Asian Currency Crisis; 6 Capital Inflows and Policy Responses: the Case of Indonesia in the.

In this book Barry Eichengreen discusses historical, theoretical, empirical and policy aspects of the effects, both positive and negative, of capital flows. He focuses on 4/5(7). The increasing capital flows in the emerging markets and developed countries have raised various concerns worldwide.

One main concern is the impact of the sharp decline of capital flows – so-called sudden stops – on financial markets and the stability of banking systems and the economy.

Once one recognizes that short-term capital flows can give rise to economic instability, there is a compelling economic case for intervention: the instability associated with short-term capital movements results in there being a marked discrepancy between private and social returns and risks.

The capital flows impose a huge negative externality. Even before the onset of the global financial crisis, United Nations Conference on Trade and Development, highlighted that “effective utilization of capital inflows to raise accumulation and growth will not be possible without an appropriate management of the capital account, particularly without regulation and control of short term.

With the focus on what might be done on short-term capital flows, there is particular interest in the experience of Chile, which for a couple of decades has imposed substantial deposit requirements on capital inflow – a quasi-tax which impinges more heavily on short-term flows.

Panics, and Crashes: A History of Financial Crises, Macmillan. Short-Term Capital Flows. Dani Rodrik and Andres Velasco. NoNBER Working Papers from National Bureau of Economic Research, Inc Abstract: We provide a conceptual and empirical framework for evaluating the effects of short-term capital flows.

A simple model of the joint determination of the maturity and cost of external borrowing highlights the role played by self-fulfilling crises. The top 10 recipients of short-term loans during included Brazil, Korea, Mexico, Russia, and Thailand.

Short-term debt exceeded international reserves in each of these countries in the period before the onset of large reversals of private capital flows and the financial crises (Charts 2 and 3).

Short-term capital flows to emerging economies. Stephen Grenville When this worked out disastrously (for example, the Asian crisis), The red line in this graph shows how the yield margin on emerging-economy local-currency debt (the difference between yield on this debt and US dollar–denominated debt) widened during the outflow.

The impact of capital mobility on stability and growth is one of the least understood and the most contentious modern day issues in economics., In his book, The Capital Flows and Crises, Barry Eichengreen provides a comprehensive theoretical and practical work involving currency provides analysis of the currency crises from a sharp historical and institutional perspective.

In this book, she turns her attention to the central asymmetry of the world financial system: rich countries retain the privilege of managing their economies, while poor countries, having liberalized their financial markets prematurely, remain hostage to volatile capital flows, and when the inevitable crisis strikes, have to succumb to ill.

The capital flows were certainly excessive in the sense that they were greater than could be absorbed (that is, the capital flows were substantially larger than the current account deficits: see Figure ).

The capital inflows into Indonesia, Malaysia, the Philippines and Thailand in the five years –94 were twice as large as the current. Capital flows to the developing economies have long displayed a boom-and-bust pattern. Rarely has the cycle turned as abruptly as it did in the s, however: surges in lending were followed by the Mexican peso crisis of and the sudden collapse of currencies in Asia in   Financial crisis could turn the tide against unrestricted capital flows including taxes on purchases of shares and bonds and insisting that short-term.

Banks, Capital Flows and Financial Crises Ozge Akinci and Albert Queraltoy November 7, Abstract This paper proposes a macroeconomic model with nancial intermediaries (banks), in which banks face occasionally binding leverage constraints and may endogenously a ect the strength of their balance sheets by issuing new equity.

The model can account. But José Antonio Ocampo, former finance minister of Colombia, writes that the major studies, notably a IMF study, find that capital controls can limit short-term flows and help manage. Financial Flows, Financial Crises, and Global Imbalances* Maurice Obstfeld University of California, Berkeley, National Bureau of Economic Reserach, and Centre for Economic Policy Research gross capital flows in and out of the U.S.

collapsed – a two-way sudden stop – in concert. Through modern history, capital flows from capital-rich to relatively capital-scarce countries has taken many forms. The experience of commercial bank lending beginning in the late s and ending with the wave of near defaults that ensued in dominates recent memory.

External surpluses, capital flows, and credit policy in the European Economic Community, to(Princeton studies in international finance) by Katz, Samuel Irving and a great selection of related books, art and collectibles available now at Capital flows to emerging markets are controversial territory.

This column argues that they create externalities that make the recipient economies more vulnerable to financial fragility and crises. It adds that policymakers can make their economies better off by regulating and discouraging the use of risky forms of external finance – in particular short-term dollar-denominated.

Short-Term Capital Flows and Economic Crisis is a collection of essays that includes chapters on countries in Latin America and Asia and South Africa. The book begins with a chapter by Montiel and Reinhart examining the causes, size, and composition of capital flows, and how flows are affected by domestic policy.

A. Koepke, R (), “What Drives Capital Flows to Emerging Markets: A Survey of the Empirical Literature”, IIF Working Paper, April, Washington DC.

Milesi-Ferretti, G M, and C Tille (), “The Great Retrenchment: International Capital Flows during the Global Financial Crisis”, Economic Policy photo: Nicolas Raymond The impact of capital flows on the incidence of financial crises has been recognized since the Asian crisis of Inflows before the crisis contributed to the expansion of domestic credit and asset booms, while the liabilities they created escalated in value once central banks abandoned their exchange rate pegs and their currencies depreciated.

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