IMF Working Papers

Globalization of Financial Markets and Implications for Pacific Basin Developing Countries

By David John Goldsbrough, Ranjit S Teja

March 1, 1991

Preview Citation

Format: Chicago

David John Goldsbrough, and Ranjit S Teja. Globalization of Financial Markets and Implications for Pacific Basin Developing Countries, (USA: International Monetary Fund, 1991) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Balance of payments, Capital flows, Current account, Current account balance, Current account deficits, Financial services, Real interest rates

Keywords: Australia and New Zealand, Capital flows, Credit rationing, Current account, Current account balance, Current account deficits, Equilibrium interest rate, Financial market integration, Government saving, Gross investment, Interest rate, Investment data, Nominal exchange rate, Rate of return, Real interest rates, World interest rates, WP

Publication Details

  • Pages:

    28

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1991/034

  • Stock No:

    WPIEA0341991

  • ISBN:

    9781451978780

  • ISSN:

    1018-5941

You May Also Be Interested In...

EBA-Lite 3.0 Model and Methodology

November 18, 2024

Foreign Exchange Intervention Under the Integrated Policy Framework: The Case of India

November 15, 2024

IMF

The Managing Director's Global Policy Agenda, Annual Meetings 2024: Secure A Soft Landing And Break From The Low Growth–High Debt Path

October 24, 2024

2024 Review Of The Poverty Reduction And Growth Trust Facilities And Financing — Reform Proposals

October 21, 2024