The open economy and its financial constraints / Penelope Hawkins.

Format:

Book

Author/Creator:

Hawkins, Penelope Anne, 1965-

Language:

English

Subjects (All):

Business cycles--Case studies.

Business cycles.

Liquidity (Economics)--Case studies.

Liquidity (Economics).

Genre:

Case studies.

Physical Description:

xii, 273 pages : illustrations ; 25 cm

Place of Publication:

Cheltenham, UK ; Northhampton, MA : Edward Elgar, [2003]

Contents:

1. Constraints and economic theory 5

1.2 Hard and soft budget constraints of the firm 7

1.3 Constraints in closed and open systems 9

1.4 Endowments and constraining tendencies 14

1.5 Blurred and latent financial constraints in open systems 15

1.6 The macroeconomy, feedback effects and systemic constraining tendencies 17

1.7 Uncertainty and the convention of money 19

2. Money, liquidity preference and banks 22

2.2 The monetary economy and uncertainty 23

2.3 Endogeneity of the money supply, liquidity preference and the banking system 33

2.4 The banking system and financial constraints 45

3. Banks' liquidity preference and financial states of constraint 54

3.2 Banks' liquidity preference and financial provision 56

3.3 Individual and neighbourhood financial exclusion and vulnerability 67

3.4 Financial provision and the national financial system 73

3.5 Financial exclusion in a regional centre-periphery analysis 75

4. Liquidity preference and capital flows in an open economy 85

4.2 The consequences of openness: two views 86

4.3 Open economies and the role of the balance of payments 92

4.4 International money, capital flows and the vulnerable economy 99

4.5 Liquidity preference and the vulnerable economy 109

5. Financial vulnerability and the open economy 117

5.2 Measures of openness 118

5.3 Measuring financial exposure 120

5.4 Constructing the financial vulnerability index 122

5.5 The index of financial vulnerability 140

5.6 Financial vulnerability index and trade intensity measures compared 145

5.7 Financial vulnerability index and sovereign credit ratings compared 148

6. Three vulnerable economies: Thailand, Brazil and South Africa 152

6.2 Balance of payments: composite measures 154

6.3 Composition of financial flows by type and maturity 166

6.4 Reserves and exchange rate volatility 175

6.5 Financial vulnerability and financial fragility 180

7. Financial constraints on economic activity and employment in South Africa 184

7.2 Linkages between the domestic financial sector and the real economy 186

7.3 The spectrum of financial provision within South Africa 192

7.4 The international financial provision spectrum and South Africa 205

7.5 South Africa as a vulnerable economy 214

8. International liquidity preference and vulnerable economies 220

8.2 The international spectrum of financial provision 220

8.3 International provision to the fringe 225

8.4 Consequences of exposure and integration: the South African case 228

8.5 Financially vulnerable countries and the way ahead 234

9.1 Theme one: constraints in economic theory 237

9.2 Theme two: liquidity preference as a constraining theory 238

9.3 Theme three: the vulnerable economy 240

9.4 The Financial Vulnerability Index 240

9.5 Analysis of the South African economy 241

9.6 The vulnerable economy and international liquidity preference 242

9.7 Limitations of the analysis and implications for further research 242.

Notes:

Based on the author's Ph. D. thesis.

Includes bibliographical references (pages 244-264) and index.

ISBN:

1843760282

OCLC:

50314865