Global Markets and the Developing Economy (International Finance and Development Series)

Cover......Page 1
Contents......Page 8
List of Tables and Figures......Page 12
Abbreviations and Acronyms......Page 13
Series Editor\'s Preface......Page 15
Author\'s Preface......Page 29
1 Introduction: Liberalization, Investment and Global Markets......Page 32
2.1 Introduction......Page 40
2.2 Global Savings......Page 43
2.3 Global Capital Markets......Page 46
2.4 Global Interest Rates......Page 50
2.5 Global Macroeconomic Co-ordination......Page 53
2.6 Conclusions......Page 56
3.1 Introduction......Page 58
3.2 International Economics in the Global Economy......Page 59
3.3 Macroeconomic Theory and the Small Open Developing Economy......Page 61
3.4 International Markets and Open Economy Macroeconomics: Are Keynesian Economic Policies Still Relevant?......Page 66
3.5 Conclusions......Page 70
4.1 Introduction......Page 75
4.2 Private Investment in the Standard Policy Model......Page 76
4.3.1 Parastatal Corporations......Page 80
4.3.2 Multinational Affiliates......Page 81
4.3.3 Private Companies......Page 82
4.3.4 Micro-enterprises......Page 84
4.4 The Implications of \'New Theories of the Firm\'......Page 86
4.5 Conclusions......Page 91
5.1 Introduction......Page 93
5.2.1 The Basic Model......Page 94
5.2.2 Extending the Basic Model......Page 96
5.2.3 Short-term vs. Long-term Effects......Page 97
5.3.1 Labour Market Distortions......Page 99
5.3.2 Growth and Adjustment......Page 101
5.4 Problems with the Standard Model......Page 102
5.5 New Trade Theory and the Microeconomics of Trade Liberalization......Page 106
5.6 New Keynesian Theory and the Macroeconomics of Trade Liberalization......Page 109
5.7 A Partial Equilibrium Model: Real Exchange Rates, Investment, Wages and Employment under Trade Liberalization......Page 113
5.8 Conclusions......Page 120
6.1 Introduction......Page 122
6.2 Capital Market Stability in Open Developing Economies......Page 125
6.3 The Impact of Short-term Capital Flows on the Real Economy I: Government, Borrowing and Public Investment......Page 132
6.4 The Impact of Short-term Capital Flows on the Real Economy II: Firms, Output and Private Investment......Page 137
6.5 The Impact of Short-term Capital Flows on the Real Economy III: Households, Employment and Wages......Page 143
6.6 Conclusions: Volatile Capital Flows, Private Investment and Public Policy......Page 149
7.1 Introduction......Page 154
7.2.1 The Original Design......Page 155
7.2.2 A Limited Life......Page 156
7.2.3 Two Decades of the \'Non-system\'......Page 158
7.2.4 The Pressure for Reform......Page 160
7.3.1 Interest Rates and Market Clearing......Page 161
7.3.2 The Standard Model of International Capital Markets......Page 162
7.3.3 Segmented Markets in Practice......Page 165
7.3.4 The Implications for Global Central Banking......Page 166
7.4.1 Short-term Financing Facility (STFF)......Page 169
7.4.2 Scope and Scale of the STFF......Page 170
7.4.3 Wider Implications of the STFF......Page 173
7.5.1 Capital Market Volatility and the Developing Countries......Page 174
7.5.2 The BIS and a Rules-based System......Page 177
7.5.3 Creating an Orderly Market......Page 179
7.6.1 The Requirements for Global Central Banking......Page 181
7.6.2 The Governance of the IMF......Page 182
7.7 Conclusions: Can the IMF Fulfil its Original Mandate?......Page 183
8.1 Introduction......Page 185
8.2.1 Systemic Characteristics of Flows towards Emerging Markets......Page 187
8.2.2 The Effectiveness of International Financial Institutions......Page 189
8.3.1 Bank Failure outside the G10......Page 191
8.3.2 Cross-border Supervision......Page 192
8.3.3 The Limitations of the Basle Approach......Page 193
8.4.1 Mutual Regulatory Recognition......Page 195
8.4.2 Regional Monetary Co-operation......Page 196
8.4.3 An International Credit Insurance Corporation?......Page 197
8.5.1 International Investment Rules......Page 199
8.5.2 Global Capital Taxation......Page 200
8.5.3 International Sovereign Debt......Page 202
8.5.4 \'Missing Institutions\'......Page 203
Notes......Page 205
References......Page 224
Index......Page 240