Cover Reaping the Benefits of Financial Globalization
Reaping the Benefits of Financial Globalization
Download PDF (1.3 MB) Download Epub

Abstract

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.

Buy Book in Print
Author:
Mr. Giovanni Dell'Ariccia
Search for other papers by Mr. Giovanni Dell'Ariccia in
Current site
Google Scholar
PubMed Close
,
Mr. Paolo Mauro
Search for other papers by Mr. Paolo Mauro in
Current site
Google Scholar
PubMed Close
,
Mr. Andre Faria
Search for other papers by Mr. Andre Faria in
Current site
Google Scholar
PubMed Close
,
Mr. Jonathan David Ostry
Search for other papers by Mr. Jonathan David Ostry in
Current site
Google Scholar
PubMed Close
,
Mr. Julian Di Giovanni
Search for other papers by Mr. Julian Di Giovanni in
Current site
Google Scholar
PubMed Close
,
Mr. Martin Schindler
Search for other papers by Mr. Martin Schindler in
Current site
Google Scholar
PubMed Close
,
Mr. Ayhan Kose
Search for other papers by Mr. Ayhan Kose in
Current site
Google Scholar
PubMed Close
, and
Mr. Marco Terrones
Search for other papers by Mr. Marco Terrones in
Current site
Google Scholar
PubMed Close
Series:
Occasional Papers
Publisher:
International Monetary Fund
Language:
English
Publication Date:
16 Dec 2008
DOI:
https://doi.org/10.5089/9781589067486.084
ISBN:
9781589067486
ISSN:
0251-6365
Pages:
52
Keywords:
OP; liberalization; capital; inancial globalization; control; volatility; risk sharing; asset trade; country fundamentals; consumption volatility; Financial integration; Capital controls; Financial sector development; Emerging and frontier financial markets; Global; East Asia; Africa
Legal-disclaimer:
The views expressed in this book are those of the authors and should not be reported as or attributed to the International Monetary Fund, its Executive Board, or the governments of any of its member countries.
  • Collapse
  • Expand