Reaping the Benefits of Financial Globalization
Summary:
Financial globalization has increased dramatically over the past three decades, particularly for advanced economies, while emerging market and developing countries experienced more moderate increases. Divergences across countries stem from different capital control regimes, and factors such as institutional quality and domestic financial development. Although, in principle, financial globalization should enhance international risk sharing, reduce macroeconomic volatility, and foster economic growth, in practice its effects are less clear-cut. This paper envisages a gradual and orderly sequencing of external financial liberalization and complementary reforms in macroeconomic policy framework as essential components of a successful liberalization strategy.
Series:
Occasional Paper No. 2008/007
Subject:
Balance of payments Capital controls Emerging and frontier financial markets Financial integration Financial markets Financial sector development Globalization
English
Publication Date:
December 16, 2008
ISBN/ISSN:
9781589067486/0251-6365
Stock No:
S264EA
Pages:
52
Please address any questions about this title to publications@imf.org