Capital Flows and Crises

by Eichengreen, Barry J.

• ISBN13: 9780262550598
• ISBN10: 0262550598
• Format: Paperback
• Copyright: 2004-09-01
• Publisher: Mit Pr

Summary

The implications of capital mobility for growth and stability are some of the most contentious and least understood contemporary issues in economics. In this book, Barry Eichengreen discusses historical, theoretical, empirical, and policy aspects of the effects, both positive and negative, of capital flows. He focuses on the connections between capital flows and crises as well as on those between capital flows and growth. Eichengreen argues that international financial liberalization, like other forms of economic liberalization, can positively affect the efficiency of resource allocation and the rate of economic growth. But analyses of both recent and historical experience also show an undeniable association between capital mobility and crises, especially when domestic institutions are weak and the harmonization of capital account liberalization and other policy reforms is inadequate. In his conclusion, Eichengreen makes suggestions for policy design to maximize the benefits of international financial liberalization while minimizing the risks of financial instability.

Author Biography

Barry Eichengreen is George C. Pardee and Helen N. Pardee Professor of Economics and Political Science at the University of California, Berkeley

Table of Contents

I Background
Introduction	3	(10)
A Century of Capital Flows	13	(36)
II Capital Account Liberalization
Capital Account Liberalization: What Do the Cross-Country Studies Tell Us?	49	(22)
When Does Capital Account Liberalization Help More Than It Hurts?	71	(28)
Carlos Arteta
Charles Wyplosz
III Crises
Exchange Market Mayhem: The Antecedents and Aftermath of Speculative Attacks	99	(56)
Andrew Rose
Charles Wyplosz
Contagious Currency Crises	155	(32)
Andrew Rose
Charles Wyplosz
The Baring Crisis in a Mexican Mirror	187	(26)
The EMS Crisis in Retrospect	213	(38)
Understanding Asia's Crisis	251	(28)
IV Policy Implications
Capital Controls: Capital Idea or Capital Folly?	279	(10)
Taming Capital Flows	289	(18)
Notes	307	(30)
References	337	(26)
Acknowledgments	363	(2)
Index	365