What is next for financial globalization: Some perspective gained from the experience of capital flows to emerging market economies

Reinhart, Carmen (2006): What is next for financial globalization: Some perspective gained from the experience of capital flows to emerging market economies.

Abstract

From Hume’s discussion of the specie-flow mechanism under the gold standard to the Keynes-Ohlin debate on the transfer problem associated with German reparations after the First World War, understanding the flow of capital across national borders has been central to international economics. My work on the topic has focused mainly on the flow of funds between rich and poor countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: capital flows financial crises international interest rates
• Subjects: F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements; F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment ; Long-Term Capital Movements

References

Ariyoshi, Akira, Karl Habermeier, Bernard Laurens, Inci Okter-Robe, Jorge Canales- Kriljenko, and Anderi Kirilenko, “Capital Controls: Country Experiences with Their Use and Liberalization”, International Monetary Fund Occasional Paper 190, 2000.

Chanda, Areendam, “The Influence of Capital Controls on Long Run Growth: Where and How Much?” Mimeograph, North Carolina State University, September 2003.

De Gregorio, José, Sebastian Edwards, and Rodrigo Valdés, “Controls on Capital Inflows: Do They Work?” Journal of Development Economics, Vol. 3 No. 1, 2000, 59-83.

Desai, Mihir, Fritz Foley, and James Hanes, “Capital Controls, Liberalizations, and Foreign Direct Investment”, National Bureau of Economic Research Working Paper 10337, March 2004. Dornbusch, Rudi, “Malaysia: Was It Different?” National Bureau of Economic Research Working Paper 8325, June 2001.

Edwards, Sebastian, “How Effective Are Controls on Capital Inflows? An Evaluation of Chile’s Experience,” Mimeograph, UCLA, June 1999.

Edwards, Sebastian, “How Effective are Capital Controls?” Journal of Economic Perspectives Vol. 13 No.4, Fall 1999, 65-84.

Edwards, Sebastian and Roberto Rigobon, “Capital Controls, Managed Exchange Rates, and External Vulnerability,” Mimeograph, UCLA, February 2004.

Forbes, Kristen, “One Cost of the Chilean Capital Controls: Increased Financial Constraints for Smaller Trade Firms”, National Bureau of Economic Research Working Paper 9777, June 2003.

Edison, Hali, Michael Klein, Licca Ricci, and Torsten Slok, “Capital Account Liberalization and Economic Performance: Survey and Synthesis”, International Monetary Fund Working Paper 02/120, July 2002.

Johnson, Simon, and Todd Mitton, “ Cronyism and Capital Controls: The Case of Malaysia,” Journal of Financial Economics, 2003.

Johnston, Barry. and Natalia Tamirisia, “Why do Countries Use Capital Controls?”, International Monetary Fund Working Paper 98/181, December 1998.

DeKaplan, Ethan and Dani Rodrik, “Did the Malaysian Capital Controls Work?” in S. Edwards and J. Frankel, eds., Preventing Currency Crises in Emerging Markets, (Chicago: University of Chicago Press for the NBER, 2002).

Labán, Raul M., and Felipe Larraín, “What determines Capital Inflows? An Empirical Analysis for Chile,” Faculty Research Working Paper Series R97-09, JFK School of Government, Harvard University, April 1997.

Labán, Raul M., and Felipe Larraín, “The Return of Private Capital to Chile in the 1990s: Causes, Effects, and Policy Reactions,” Faculty Research Working Paper Series R98-02, JFK School of Government, Harvard University, January 1998.

Le Fort, Guillermo and Carlos Budnevich, “Capital Account Regulations and Macroeconomic Policy: Two Latin Experiences,” Mimeograph, Banco Central de Chile, March 1996.

Lucas, Robert, “Why Doesn’t Capital Flow from Rich to Poor Countries,” American Economic Review, May 1990, 92-96.

Miniane, Jacques and John Rogers, “Capital Controls and the International Transmission of U.S. Money Shocks,” Board of Governors of the Federal Reserve, mimeograph, June 2004.

Nitithan Prapas, Isriya, Sunil Rongala, and Thomas D. Willett, “The Role of Capital Controls and Currency Regimes in the Asian Crisis, Mimeograph School of Politics and Economics Claremont Graduate University, August 2002.

Tamirisia, Natalia, “The Malaysian Batik of Capital Controls,” International Monetary Fund, mimeograph 2004.

Ulan, Michael K. “Is a Chilean-Style Tax on Sort-Term Capital Inflows Stabilizing?” Open Economies Review, Vol. 11.

Valdés-Prieto, Salvador, and Marcelo Soto, “New Selective Capital Controls in Chile: Are They Effective? Mimeograph, Universidad Católica de Chile, September 1995.