Cover IMF Working Papers
Globalization of Financial Markets and Implications for Pacific Basin Developing Countries
Author: Mr. David John Goldsbrough and Mr. Ranjit S Teja
Series:
IMF Working Papers
Volume/Issue:
Volume 1991: Issue 034
Language:
English
Publication Date:
01 Mar 1991
DOI:
https://doi.org/10.5089/9781451978780.001
ISBN:
9781451978780
ISSN:
1018-5941
Pages:
28
Keywords:
WP; interest rate; rate of return; financial market integration; gross investment; credit rationing; nominal exchange rate; world interest rates; government saving; investment data; equilibrium interest rate; Current account; Current account deficits; Real interest rates; Current account balance; Capital flows; Australia and New Zealand
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper analyzes the consequences of the growing interdependence of world financial markets for Pacific developing countries. Section I discusses trends in financial integration in the Pacific and the underlying movements in saving and investment. Section II seeks to quantify the increased capital mobility, in terms of rate of return differentials and the degree of correlation between savings and investment rates across countries. Section III focuses on policy implications of increasing integration, including the effectiveness of macroeconomic policy instruments, the usefulness of the current account as a target of policy, and the dangers of excessive taxation of financial intermediation.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund