Playing with fire : deepened financial integration and changing vulnerabilities of the global South / Yilmaz Akyüz.

Format:

Book

Author/Creator:

Akyüz, Yılmaz, author.

Series:

Critical frontiers of theory, research, and policy in international development studies

Language:

English

Subjects (All):

Finance--Developing countries.

Finance.

Developing countries.

Capital movements--Developing countries.

Capital movements.

Physical Description:

xx, 258 pages : illustrations ; 25 cm.

Place of Publication:

Oxford, United Kingdom: Oxford University Press 2017.

Summary:

Starting in the early 1990s many emerging and developing economies (EDEs) liberalized their capital accounts, allowing greater freedom for international lenders and investors to enter their markets as well as for their residents to borrow and invest in international financial markets. Despite recurrent crises, liberalization has continued and in fact accelerated in the new millennium. Integration has been greatly facilitated by progressively looser monetary policy in the United States, notably the policies that culminated in debt crises in the United States and Europe and the ultra-easy monetary policy adopted in response. Not only have their traditional cross-border linkages been deepened and external balance sheets expanded rapidly, but also foreign presence in their domestic financial markets and the presence of their nationals in foreign markets have reached unprecedented levels. As a result new channels have emerged for the transmission of financial shocks from global boom-bust cycles. Almost all EDEs are now vulnerable irrespective of their balance-of-payments, external debt, net foreign assets and international reserve positions although these play an important role in the way such shocks could impinge on them. This is a matter for concern since the multilateral system still lacks mechanisms for orderly resolution of financial crises with international dimensions. 0.

Contents:

Part I The Financial Crisis, Policy Response, and the Global South

1 Policy Response in Advanced Economies: Neo-liberal Fallacies and Obsessions 23

2 Spillovers to the Global South 59

Part II Internationalization of Finance and Changing Vulnerabilities in Emerging and Developing Economies

3 Deepening Integration 83

4 External Vulnerabilities 133

5 Crisis Management and Resolution 152

Part III Foreign Direct Investment and Economic Development: Myths and Realities

6 Foreign Direct Investment: Its Nature and Impact on Capital Formation and Balance-of-Payments 169

7 FDI, Industrialization, and Development: Role of Policy 197.

Notes:

Includes bibliographical references (pages 219-245) and index.

ISBN:

9780198797173

0198797176

OCLC:

974863423