Hanson, James A.Honohan, PatrickMajnoni, GiovanniHanson, James A.Honohan, PatrickMajnoni, Giovanni2013-08-192013-08-1920030-8213-5208-3https://hdl.handle.net/10986/15160The volume is divided into five traditional areas of finance: the macroeconomy, banking, securities markets, pension issues, and regulations. Four cross-cutting messages emerge. First, the erosion of national frontiers by trade, tourism, migration, and capital account liberalization means that residents of all countries have substantial financial assets, and often liabilities denominated in foreign currencies at home or abroad. Any analysis of national financial systems must take this into account. More important, this factor constrains governments' use of macroeconomic and financial policy and may contribute to economic fluctuations. Second, individuals and firms benefit substantially from the improved risk and return menu associated with global diversification. Diversification is of particular importance in developing countries where the lack of size and diversity of the national economy results in instability in the value of production. Third, the small size of most developing countries limits the efficiency and quality of financial services: banking, equity markets, and pensions. Thus cross-border provision of financial services, one facet of globalization, has potential benefits for small economies. Fourth, taking full advantage of the opportunities presented by globalization and minimizing its costs depend on effective regulation and supervision to ensure good quality information, transparency, market integrity, and prudent investing by banks and pension funds.en-USCC BY 3.0 IGOASSET PRICINGAVERAGE COSTSBANK CAPITALBANK DEPOSITSBANK OF KOREABANK SIZEBANK SUPERVISIONBANKING INDUSTRYBANKING SERVICESBANKING SYSTEMSBANKSBORROWINGCAPITAL ACCOUNTCAPITAL ACCOUNT LIBERALIZATIONCAPITAL ACCOUNT OPENINGCAPITAL ACCOUNTSCAPITAL CONTROLSCAPITAL FLIGHTCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCAPITAL OUTFLOWSCAPITALIZATIONCENTRAL BANKCENTRAL BANK ISSUESCOMMERCIAL BANKSCONSUMPTION SMOOTHINGCONTAGIONCORPORATE FINANCECREDIT RISKCURRENCY ASSETSCURRENCY BOARDCURRENCY RISKCURRENT ACCOUNTDEBTDEBT CRISISDEFICITSDEPOSIT DOLLARIZATIONDEVALUATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING ECONOMIESDEVELOPMENT BANKDEVELOPMENT ECONOMICSDEVELOPMENT STRATEGYDIRECTED CREDIT REQUIREMENTSDOMESTIC FINANCIAL SECTORDOMESTIC FINANCIAL SYSTEMDOMESTIC FINANCIAL SYSTEMSECONOMETRICSECONOMIC FLUCTUATIONSECONOMIC POLICYECONOMIC RESEARCHECONOMICS RESEARCHECONOMIES OF SCALEEMPIRICAL EVIDENCEEQUITY MARKETSEXCHANGE CONTROLSEXCHANGE RATEEXCHANGE RATE REGIMEEXCHANGE RATESFEDERAL RESERVE BOARDFINANCIAL ASSETSFINANCIAL CONTAGIONFINANCIAL CONTRACTSFINANCIAL CRISESFINANCIAL GLOBALIZATIONFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKET DEVELOPMENTFINANCIAL MARKETSFINANCIAL REGULATIONFINANCIAL REPRESSIONFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SECTORSFINANCIAL SERVICESFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL VOLATILITYFISCAL POLICYFLOATING EXCHANGE RATEFLOATING EXCHANGE RATESFOREIGN ASSETSFOREIGN BANKSFOREIGN CURRENCYFOREIGN CURRENCY DEPOSITSFOREIGN CURRENCY LIABILITIESFOREIGN EXCHANGEFOREIGN EXCHANGE RISKGDPGLOBALIZATIONGOVERNMENT BAILOUTGOVERNMENT DEBTGROSS DOMESTIC PRODUCTHIGH INFLATIONINDIVIDUAL ACCOUNTSINDUSTRIAL COUNTRIESINFLATIONINFLATION TAXINFLATIONARY POLICIESINSURANCEINTEREST RATESINTERNATIONAL BANKINGINTERNATIONAL BANKING STATISTICSINTERNATIONAL BOND ISSUESINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL CAPITAL MOVEMENTSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL ARCHITECTUREINTERNATIONAL FINANCIAL STATISTICSINTERSTATE BANKINGINVESTMENT RATESLIQUIDITYLOCAL CURRENCYLOCAL GOVERNMENTLOW-INCOME COUNTRIESLOW-INCOME ECONOMIESM2MACROECONOMICSMATURITIESMERGERSMIGRATIONMONETARY POLICYMUTUAL FUNDSNOMINAL RATESNONBANK INSTITUTIONSPENSIONSPOLICY RESEARCHPORTFOLIO DIVERSIFICATIONPORTFOLIOSPRICE STABILITYPRIVATE BANKSPRIVATE CONSUMPTIONPRIVATE SECTORPRODUCTION COSTSPRODUCTION EFFICIENCYPUBLIC ENTERPRISESPUBLIC POLICYPUBLIC SECTORREINSURANCE CONTRACTSRETURN ON ASSETSRISK AVERSERISK DIVERSIFICATIONRISK MANAGEMENTSAVINGSSAVINGS INSTITUTIONSSECTOR RESTRUCTURINGSECURITIESSECURITIES MARKETSSHORT MATURITIESSTABILIZATION PROGRAMSSTOCK EXCHANGESTOCK EXCHANGESSTOCK MARKETSUBSIDIARYTAXATIONTELECOMMUNICATIONSTIME SERIESTRANSPARENCY GLOBALIZATIONFINANCIAL SYSTEMSMACROECONOMICSFINANCIAL SECTORSECURITIESMARKET EQUILIBRIUMDIVERSIFICATIONPENSION REFORMPENSIONSPENSION FUNDSTRADETOURISMMIGRATIONSFINANCIAL ASSETSLIABILITYFOREIGN CURRENCYEQUITY MARKETSMARKET ORIENTATIONWorld Bank10.1596/0-8213-5208-3