| Curbing the Boom-Bust Cycle: Stabilizing Capital Flows to Emerging Markets Contributor(s): Williamson, John (Author) |
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ISBN: 0881323306 ISBN-13: 9780881323306 Publisher: Peterson Institute for International Economic OUR PRICE: $22.72 Product Type: Paperback - Other Formats Published: July 2005 Annotation: For the past three decades, a boom-bust cycle in capital flows has repeatedly plunged into crisis countries that had been growing rapidly. Are there feasible policy actions to curb this cycle and thus permit both investors and emerging markets to tap the benefits of capital mobility without the costs of crises? Williamson concludes that a significant reduction in the wild swings in capital flows is feasible, even though complete stability is not. The boom-bust problem cannot be tackled just, or even mainly, from the supply side but will require actions on the part of both creditors and debtors, including forward-looking provisioning by banks, retention of capital controls in some cases, and introduction of new financial instruments. The action program developed in this study is intended to facilitate financial maturity in emerging markets similar to that which has already occurred in the industrial countries. |
| Additional Information |
| BISAC Categories: - Business & Economics | Free Enterprise & Capitalism - Business & Economics | International - Economics - Business & Economics | Economics - Theory |
| Dewey: 332.042 |
| LCCN: 2005043366 |
| Series: Policy Analysis in International Economics |
| Physical Information: 0.42" H x 6.08" W x 9.08" (0.48 lbs) 144 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: International investors poured vast sums of money into East Asian and Latin American countries during the mid-1990s, when the emerging market boom was at its peak. Then Thailand stumbled and panic seized the markets, and boom gave way to bust. Investors suffered large financial losses, while Asian countries suddenly experienced large capital outflows and the macroeconomic pressures these wrought plunged countries that had been growing rapidly ("miraculously") into crisis. Much the same had happened in Latin America when the debt crisis broke in 1982. This book investigates what can be done to make the international capital market a constructive force in promoting development in emerging markets. John Williamson concludes that the problem of cyclicality that has undermined the value of international borrowing cannot be tackled just, or even mainly, from the supply side, but will require actions on the part of both creditors and debtors. |