Publication:
Managing Financial Integration and Capital Mobility -- Policy Lessons from the Past Two Decades

Simple item page
dc.contributor.authorAizenman, Joshua
dc.contributor.authorPinto, Brian
dc.date.accessioned2012-03-19T18:04:27Z
dc.date.available2012-03-19T18:04:27Z
dc.date.issued2011-08-01
dc.description.abstractThe accumulated experience of emerging markets over the past two decades has laid bare the tenuous links between external financial integration and faster growth, on the one hand, and the proclivity of such integration to fuel costly crises on the other. These crises have not gone without learning. During the 1990s and 2000s, emerging markets converged to the middle ground of the policy space defined by the macroeconomic trilemma, with growing financial integration, controlled exchange rate flexibility, and proactive monetary policy. The OECD countries moved much faster toward financial integration, embracing financial liberalization, opting for a common currency in Europe, and for flexible exchange rates in other OECD countries. Following their crises of 1997-2001, emerging markets added financial stability as a goal, self-insured by building up international reserves, and adopted a public finance approach to financial integration. The global crisis of 2008-2009, which originated in the financial sector of advanced economies, meant that the OECD "overshot" the optimal degree of financial deregulation while the remarkable resilience of the emerging markets validated their public finance approach to financial integration. The story is not over: with capital flowing in droves to emerging markets once again, history could repeat itself without dynamic measures to manage capital mobility as part of a comprehensive prudential regulation effort.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110831145953
dc.identifier.doi10.1596/1813-9450-5786
dc.identifier.urihttps://hdl.handle.net/10986/3549
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5786
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectARBITRAGE
dc.subjectBAILOUT
dc.subjectBAILOUTS
dc.subjectBALANCE OF PAYMENTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBALANCE-OF-PAYMENTS CRISES
dc.subjectBANK BRANCHES
dc.subjectBANK DEBT
dc.subjectBANK LENDING
dc.subjectBANK LOANS
dc.subjectBANKING SYSTEM
dc.subjectBOND
dc.subjectBOND ISSUANCE
dc.subjectBONDS
dc.subjectBORROWING COSTS
dc.subjectBUDGET CONSTRAINT
dc.subjectBUSINESS CYCLE
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL BASE
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FUNDS
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MOBILITY
dc.subjectCAPITAL OUTFLOWS
dc.subjectCAPITAL STOCK
dc.subjectCENTRAL BANK
dc.subjectCENTRAL BANK BILLS
dc.subjectCENTRAL BANKS
dc.subjectCOMMERCIAL BANKS
dc.subjectCONTINGENT LIABILITIES
dc.subjectCOUNTRY RISK
dc.subjectCREDIBILITY
dc.subjectCURRENCY
dc.subjectCURRENCY BOARDS
dc.subjectCURRENCY COMPOSITION
dc.subjectCURRENCY CRISES
dc.subjectCURRENCY CRISIS
dc.subjectCURRENCY MISMATCHES
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectCURRENT ACCOUNT SURPLUS
dc.subjectCURRENT ACCOUNT SURPLUSES
dc.subjectDEBT
dc.subjectDEBT CRISIS
dc.subjectDEBT INSTRUMENTS
dc.subjectDEBT OVERHANG
dc.subjectDEPOSIT
dc.subjectDEPOSIT INSURANCE
dc.subjectDEPOSITS
dc.subjectDERIVATIVE
dc.subjectDERIVATIVE CONTRACTS
dc.subjectDERIVATIVES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDISCLOSURE REQUIREMENTS
dc.subjectDOMESTIC BANKING
dc.subjectDOMESTIC BANKS
dc.subjectDOMESTIC CAPITAL
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC INTEREST RATE
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET COUNTRIES
dc.subjectEMERGING MARKET COUNTRY
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEQUITY FLOWS
dc.subjectEQUITY FUNDS
dc.subjectEXCHANGE CONTROLS
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATE INSTABILITY
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXTERNAL BORROWING
dc.subjectEXTERNAL BORROWINGS
dc.subjectEXTERNAL COMMERCIAL BORROWING
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL ASSET
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL INSTABILITY
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL LIBERALIZATION
dc.subjectFINANCIAL OPENNESS
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL STRESS
dc.subjectFINANCIAL SYSTEM
dc.subjectFINANCIAL SYSTEMS
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectFIXED EXCHANGE RATE
dc.subjectFIXED EXCHANGE RATES
dc.subjectFIXED INCOME
dc.subjectFIXED INCOME INVESTMENT
dc.subjectFLEXIBLE EXCHANGE RATES
dc.subjectFORECLOSURE
dc.subjectFOREIGN BANK
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN CAPITAL
dc.subjectFOREIGN CURRENCIES
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN CURRENCY DEBT
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EQUITY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectFOREIGN INFLOWS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN PORTFOLIO INVESTMENTS
dc.subjectFOREIGN PORTFOLIO INVESTORS
dc.subjectFUTURES
dc.subjectFUTURES MARKET
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBALIZATION
dc.subjectGOVERNMENT DEBT
dc.subjectHOLDING
dc.subjectHOLDINGS
dc.subjectINCOME TAX
dc.subjectINDEBTEDNESS
dc.subjectINFLATIONARY EXPECTATIONS
dc.subjectINSURANCE
dc.subjectINSURANCE MARKETS
dc.subjectINTEREST RATE CAP
dc.subjectINTEREST RATE CAPS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectINTERNATIONAL FINANCE
dc.subjectINTERNATIONAL FINANCIAL INTEGRATION
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORY
dc.subjectINVESTMENT RATE
dc.subjectINVESTMENT RATES
dc.subjectLENDER
dc.subjectLENDER OF LAST RESORT
dc.subjectLEVY
dc.subjectLIABILITY
dc.subjectLIQUIDATION
dc.subjectLIQUIDITY
dc.subjectLOAN
dc.subjectLOCAL BANK
dc.subjectLOCAL CURRENCY
dc.subjectMACROECONOMIC CRISES
dc.subjectMACROECONOMIC CRISIS
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMACROECONOMIC RISK
dc.subjectMARKET ACCESS
dc.subjectMARKET CAPITALIZATION
dc.subjectMARKET INTEGRATION
dc.subjectMATURITIES
dc.subjectMATURITY
dc.subjectMONETARY FUND
dc.subjectMONETARY POLICY
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectNATIONAL INVESTMENT
dc.subjectNATIONAL SAVING
dc.subjectNATIONAL SAVINGS
dc.subjectOPEN ECONOMIES
dc.subjectOPEN ECONOMY
dc.subjectOPPORTUNITY COST
dc.subjectOUTPUT LOSS
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPERMANENT INCOME HYPOTHESIS
dc.subjectPOLITICAL ECONOMY
dc.subjectPORTFOLIO
dc.subjectPRICE RISK
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE CAPITAL
dc.subjectPRIVATE EQUITY
dc.subjectPRUDENTIAL REGULATION
dc.subjectPRUDENTIAL REGULATIONS
dc.subjectPRUDENTIAL SUPERVISION
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC INVESTMENTS
dc.subjectREAL EXCHANGE RATE
dc.subjectRESERVE
dc.subjectRESERVE REQUIREMENT
dc.subjectRESERVE REQUIREMENTS
dc.subjectRESERVES
dc.subjectRETURN
dc.subjectRETURNS
dc.subjectRISK EXPOSURE
dc.subjectRISK NEUTRAL
dc.subjectSAFETY NETS
dc.subjectSAVINGS RATES
dc.subjectSETTLEMENT
dc.subjectSHORT-TERM CAPITAL
dc.subjectSHORT-TERM DEBT
dc.subjectSHORT-TERM EXTERNAL DEBT
dc.subjectSOVEREIGN DEBT
dc.subjectSOVEREIGN RISK
dc.subjectSTOCK MARKET
dc.subjectSTOCKS
dc.subjectSWAP
dc.subjectTAX
dc.subjectTAX COLLECTION
dc.subjectTAX ON INTEREST INCOME
dc.subjectTAX REGIME
dc.subjectTAX TREATMENT
dc.subjectTRANSACTION
dc.subjectTRANSPARENCY
dc.subjectTREASURY
dc.subjectTREASURY BILL
dc.subjectTREATY
dc.subjectVALUATION
dc.subjectWITHHOLDING TAX
dc.titleManaging Financial Integration and Capital Mobility -- Policy Lessons from the Past Two Decadesen
dspace.entity.typePublication
okr.crossref.titleManaging Financial Integration and Capital Mobility-Policy Lessons from the Past Two Decades
okr.date.disclosure2011-08-01
okr.date.doiregistration2025-04-10T11:16:52.580496Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110831145953
okr.guid312491468135942900
okr.identifier.doi10.1596/1813-9450-5786
okr.identifier.externaldocumentum000158349_20110831145953
okr.identifier.internaldocumentum14932152
okr.identifier.reportWPS5786
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/08/31/000158349_20110831145953/Rendered/PDF/WPS5786.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
WPS5786.pdf
Size:
1.3 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
WPS5786.txt
Size:
115.78 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers