Capital market liberalization and development / edited by José Antonio Ocampo and Joseph E. Stiglitz.

Format:

Book

Contributor:

Stiglitz, Joseph E.

Ocampo, José Antonio.

Series:

Initiative for policy dialogue series

The initiative for policy dialogue series

Language:

English

Subjects (All):

Capital market--Government policy.

Capital market.

Physical Description:

xii, 375 pages : illustrations ; 24 cm.

Place of Publication:

Oxford ; New York : Oxford University Press, 2008.

Summary:

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 IMF acknowledging 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 among academics 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 has resulted 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 associated with capital market liberalization and the alternative policy options available to enhance macroeconomic management.

Contents:

1 Capital Market Liberalization and Development / Jose Antonio Ocampo, Shari Spiegel, Joseph E. Stiglitz 1

2 The Benefits and Risks of Financial Globalization / Sergio L. Schmukler 48

3 Capital Market Liberalization, Globalization, and the IMF / Joseph E. Stiglitz 76

4 From the Boom in Capital Inflows to Financial Traps / Roberto Frenkel 101

5 Capital Market Liberalization and Poverty / Andrew Charlton 121

6 Capital Management Techniques in Developing Countries: Managing Capital Flows in Malaysia, India, and China / Gerald Epstein, Ilene Grabel, K. S. Jomo 139

7 The Role of Preventative Capital Account Regulations / Jose Antonio Ocampo, Jose Gabriel Palma 170

8 The Malaysian Experience in Financial-Economic Crisis Management: An Alternative to the IMF-Style Approach / Martin Khor 205

9 Domestic Financial Regulations in Developing Countries: Can They Effectively Limit the Impact of Capital Account Volatility? / Liliana Rojas-Suarez 230

10 The Pro-Cyclical Impact of Basel II on Emerging Markets and its Political Economy / Stephany Griffith-Jones, Avinash Persaud 262

11 Consequences of Liberalizing Derivatives Markets / Randall Dodd 288

12 Do Global Standards and Codes Prevent Financial Crises? / Benu Schneider 319.

Notes:

Includes bibliographical references and index.

ISBN:

9780199230587

0199230587

9780199238446

0199238448

OCLC:

173498609