Occasional Papers

Developing Essential Financial Markets in Smaller Economies: Stylized Facts and Policy Options

Publication Date:

December 16, 2008

Electronic Access:

Link to Abstract

Summary:

This paper surveys the foreign exchange markets, money and secondary government security markets, and stock exchanges in 107 smaller economy countries. The underdevelopment of these markets impedes risk transfer, monetary policy, corporate financing, and the capacity to absorb capital inflows. This study marks a first step toward formulating policies to develop essential smaller economy financial markets by documenting the stylized facts and presenting a framework for assessing the policy issues.

Series:

Occasional Paper No. 2008/006

Subject:

Banking Currency markets Emerging and frontier financial markets Financial institutions Financial markets Foreign exchange Government securities Interbank markets Stock markets