Mexico: Trade and Financial Liberalization With Volatile Capital Inflows: Macroeconomic Consequences and Social Impacts During the 1990s

2001 ◽  
pp. 217-250 ◽  
Author(s):  
Jaime Ros ◽  
Nora Lustig
Keyword(s):  
Financial Liberalization ◽  
Social Impacts ◽  
Capital Inflows

Regulating Capital Flows: A Historical Perspective

2018 ◽  
Author(s):  
Atish R. Ghosh ◽  
Jonathan D. Ostry ◽  
Mahvash S. Qureshi
Keyword(s):  
Emerging Markets ◽  
Capital Flows ◽  
Historical Perspective ◽  
Financial Liberalization ◽  
Capital Controls ◽  
Authoritarian Regimes ◽  
Capital Inflows ◽  
Macroeconomic Policies ◽  
Advanced Economies ◽  
Guilt By Association

This chapter summarizes how thinking about capital flows and their management has evolved in both policymaking and academic circles. Many advanced economies used restrictions on capital inflows for prudential purposes—even as they pursued financial liberalization more broadly—until the 1980s, when capital account restrictions began to be swept away as part of broader liberalization efforts. Likewise, many emerging markets that had inflow controls for prudential reasons dismantled them when liberalizing domestic financial markets and controls over outflows. That the use of capital controls as a means of managing inflows is often viewed with suspicion may be partly a “guilt by association” with outflow controls and exchange restrictions. Historically, these have been more prevalent and more intensive, and their purpose has been to prop up authoritarian regimes or poor macroeconomic policies, often affecting both current and capital transactions.

scholarly journals Volatılıty Spıllovers from The Internatıonal Capıtal Inflows to Economıc Growth in Turkey

2017 ◽  
Vol 1 (1) ◽  
pp. 18 ◽  
Author(s):  
Arif Orçun Söylemez
Keyword(s):  
Economic Growth ◽  
Positive Relationship ◽  
Financial Liberalization ◽  
Mean Value ◽  
Capital Inflows ◽  
International Capital ◽  
Conditional Correlation ◽  
Conditional Mean ◽  
Volatility Spillovers ◽  
The Mean

This paper empirically investigates the volatility interactions between the international capital inflows to Turkey and Turkish economic growth using the post-financial-liberalization era data. With an Extended Constant Conditional Correlation GARCH model, it is shown that there are volatility spillovers from the capital inflows to growth in Turkey. Some earlier studies in literature have already established a positive relationship between the capital inflows and economic growth in Turkey. According to their results, as the mean value of capital inflows to Turkey increases, so does the conditional mean value of Turkish economic growth. This study is important for it shows that as the volatility of capital inflows to Turkey increases, so does the volatility of Turkish economic growth.   

scholarly journals The Twin Crises: The Causes of Banking and Balance-of-Payments Problems

1999 ◽  
Vol 89 (3) ◽  
pp. 473-500 ◽  
Author(s):  
Graciela L Kaminsky ◽  
Carmen M Reinhart
Keyword(s):  
Economic Activity ◽  
Financial Crises ◽  
Currency Crises ◽  
Banking Sector ◽  
Financial Liberalization ◽  
Currency Crisis ◽  
Banking Crises ◽  
Balance Of Payments ◽  
Capital Inflows ◽  
The Subject

In the wake of the Mexican and Asian currency turmoil, the subject of financial crises has come to the forefront of academic and policy discussions. This paper analyzes the links between banking and currency crises. We find that: problems in the banking sector typically precede a currency crisis—the currency crisis deepens the banking crisis, activating a vicious spiral; financial liberalization often precedes banking crises. The anatomy of these episodes suggests that crises occur as the economy enters a recession, following a prolonged boom in economic activity that was fueled by credit, capital inflows, and accompanied by an overvalued currency. (JEL F30, F41)

scholarly journals The Effect of Financial Liberalization and Capital Flows on Income Volatility in Asia-Pacific

2018 ◽  
Vol 20 (3) ◽  
pp. 257-278
Author(s):  
Feriansyah Abdullah ◽  
Noer Azham Achsani ◽  
Tony Irawan
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Capital Flows ◽  
Financial Liberalization ◽  
Capital Inflows ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Income Volatility ◽  
Capital Outflows

This paper examines the effect of financial liberalization on income volatility focused on the direction of capital flows in the Asia-Pacific region. By using a dynamic panel model, this study investigates the effect of financial liberalization on income volatility in 19 Asia-Pacific countries over the period 1976-2015. The results show that the financial liberalization in the Asia-Pacific region associated with low income volatility is only perceived by developed countries, while not for developing countries. This paper also investigates the effect of capital flows on different types of directions. The results show that capital outflows will be associated with low income volatility, whereas capital inflows will be associated with high income volatility. The negative effect of financial liberalization on income volatility in developing countries is caused by the majority of those countries holding larger capital inflows, compared to capital outflows. Therefore, the excess capital inflows in developing countries increase the pressure and the vulnerability to the crisis.

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