Browse

You are looking at 1 - 10 of 30 items for :

  • Taiwan, Province of China x
Clear All
International Monetary Fund. Monetary and Capital Markets Department

Abstract

The following remarks by the Acting Chair were made at the conclusion of the Executive Board's discussion of the Global Financial Stability Report on March 14, 2003.

Ms. Catherine A Pattillo, Mr. Andrew Berg, Mr. Gian M Milesi-Ferretti, and Mr. Eduardo Borensztein

Abstract

Recent years have witnessed an increase in the frequency of currency and balance of payments crises in developing countries. More important, the crises have become more virulent, have caused widespread disruption to other developing countries, and have even had repercussions on advanced economies. To predict crises, their causes must be clearly understood. Two competing strands of theories are reviewed in this paper. The first focuses on the consequences of such policies as excessive credit growth in provoking depletion of foreign exchange reserves and making a devaluation enevitable. The second emphasizes the trade-offs between internal and external balance that the policymaker faces in defending a peg.

David A. Wise, Graham Bird, Jeffrey D. Sachs, Dahlan Sutalaksana, Marie Lavigne, Bernhard Fischer,, Juan-Carlos Herken-Krauer,, Matthias Lucke,, Peter Nunnenkamp, and Pierre Grou

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Robert R. Miller

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

Arturo Israel

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

International Monetary Fund. Monetary and Capital Markets Department

Abstract

The adjustment in financial markets and the real economy following the bursting of the asset price bubble continues to influence developments. This is reflected in the hesitant and uneven pace of global economic growth and the reluctance of corporations to boost capital expenditure. Risk appetite has also been curtailed, contributing to the unwillingness of investors to support a recovery of equities in mature markets, to continued tiering in the mature and emerging credit markets, and to uneven flows to emerging market borrowers. The negative influence, however, appears to be waning. Household balance sheets in the United States appear to have stabilized, U.S. corporate balance sheets have strengthened somewhat, and financial institutions are showing tentative signs of being less hesitant to take on risk.

International Monetary Fund. Monetary and Capital Markets Department

Abstract

Financial conditions in mature markets stabilized somewhat since the beginning of the fourth quarter of 2002, although any improvements remain tentative. Major equity markets edged down in October before firming through December, but for the year as a whole posted the third consecutive annual decline. Trading in the first two months of 2003 gave back most of the late-year gains. Corporate bond markets came under some stress early in the fourth quarter but firmed up toward year-end, with both rates and spreads moving lower. A decreased attractiveness of U.S. fixed income securities contributed to a weakening of the dollar, particularly versus the euro. Performance in commercial banking was mixed, as retail franchises generally strengthened while wholesale business remained depressed. Insurance companies and pension funds were hurt by equity market declines. Balance sheets in some key nonfinancial sectors have stabilized and perhaps begun to improve. Monetary accommodation and caution on the part of investors have resulted in a buildup of cash positions in both retail and institutional portfolios, which has both favorable implications for financial stability as well as presenting new risks.

International Monetary Fund. Monetary and Capital Markets Department

Abstract

Emerging markets faced internal and external challenges throughout most of last year Toward the end of the year, however, emerging market bonds rallied in the secondary market and access eased in the primary market as global investors reached for yield and concerns over policy continuity in key emerging markets dissipated. Banking sector financial soundness—which is reviewed for the first time in this issue of the GFSR—was mixed. Banks in some countries in Latin American remain in distress, while others in the region have achieved stronger results. In contrast, the financial health of banks in emerging Asia and Eastern Europe has generally improved.

International Monetary Fund. Monetary and Capital Markets Department

Abstract

The development of local securities and derivatives markets is just one response of many emerging markets to global volatility since the mid-1990s, particularly the sudden losses of access to international capital markets and periods of high global asset price volatility. While previous issues of the Global Financial Stability Report (GFSR) have examined the recent development of local equities, bonds, and derivatives markets in emerging markets, this chapter examines key policy issues related to the role of these markets as an alternative source of funding for sovereign and corporate entities and a means of attracting foreign capital inflows.

NORMAN LOAYZA, HUMBERTO LOPEZ, and ANGEL UBIDE

This paper analyzes common economic patterns across countries and economic sectors in Latin America, East Asia, and Europe for the period 1970-94 by means of an error-components model that decomposes real value-added growth in each country into common international effects, sector-specific effects, and country-specific effects. We find significant comovements in the European and East Asian samples. In the Latin American sample, however, we find country-specific components to be more important than common patterns. These results are robust to different sub-sample time spans and different sub-sample country groups.