Global capital markets : integration, crisis, and growth
This book presents an economic survey of international capital mobility since the late nineteenth century. Governments face a fundamental macroeconomic policy trilemma which forces them to trade off among their conflicting goals, with natural implications for capital mobility
Print Book, English, 2005
1st pbk. ed View all formats and editions
Cambridge University Press, Cambridge, 2005
History
xviii, 354 pages : illustrations ; 23 cm
9780521671798, 0521671795
1034918189
Part I. Preamble
Section 1. Global Capital Markets: Overview and Origins
1. Theoretical benefits
2. Problems of supernational capital markets in practice
3. The emergence of world capital markets
4. The trilemma: capital mobility, the exchange rate, and monetary policy
Part II. Global Capital in Modern Historical Perspective
Section 2. Globalization in Capital Markets: Quantity Evidence
5. The stocks of foreign capital
6 The size of international flows
7. The saving-investment relationship
8. Caveats: quantity criteria
Section 3. Globalization in Capital Markets: Price Evidence
9. Real interest rate convergence
10. Exchange-risk free nominal interest parity
11. Purchasing power parity
12. Caveats: price criteria
13. Summary
Part III. The Political Economy of Capital Mobility
Section 4. Globalization in Capital Markets: A Long-Run Narrative
14. Capital without constraints: the gold standard, 1870-1931
15. Crisis and compromise: depression and war, 1931-46
16. Containment then collapse: Bretton Woods, 1946-71
17. Crisis and compromise II: the floating era, 1971-99
18. Measuring financial integration using data on legal restrictions
Section 5. The Trilemma in History. 19. Methodology
20. Data sources
21. Stationarity of nominal interest rates
22. Empirical findings: pooled annual differences
23. Empirical findings: individual-country dynamics
24. Conclusion
Section 6. Sovereign Risk, Credibility and the Gold Standard
25. Five suggestive cases
26. Econometric analysis
27. Conclusion
Part IV. Lessons for Today
Section 7. Uneven Rewards
28. Foreign capital stocks: net versus gross
29. Foreign capital flows: rich versus poor
30. Foreign capital stocks: rich versus poor
31. Then: has foreign capital always been biased to the rich?
32. Now: have poor countries really liberalized their markets?
33. Variations in the types of capital flows
34. Summary
Section 8. Uneven Risks
35. Open markets, crises and volatility
36. Crises, controls and economic performance
37. Contagion and self-fulfilling crises
38. Market failure, government failure and policy choices
Originally published: 2004