Friday, March 09, 2007
" capital rules" by Rawi Abdelal
" The idea that capital ought to flow unrestrictd across the globe became the reigning orthodoxy of international finance over the course of the 1980 s and the 1990 s, that orthodoxy is already in decline and its reign in question.
As a matter of capital flows, global finance is as strong as ever. But when it comes to the norms and rules of global finance, the very ideas and laws that sustain the system, th height of this era of blobalisation has already been reached.
Policy makers understand the international financial system very differently in the first decade of a new century.
Caution toward full capital mobility now previls within the international fianancial community.
The IMF, oecd, AND CREDIT-RATING AGENCIES HAVE BEEN CONGRATULATED, OCCATIONALLY BY ONE ANOTHER AND TEHMESELVES, FOR HAVING " LEARNED " VALUABLE LESSONS FROM THE EMERGING MARKET FINANCIAL CRISES AND THEIR APPARENT CONTAGIOUS SPREAD ; THE DANGERS OF EMBRACING HOT MONEY INSTEAD OF LONGER TERM CAPITAL FLOWS ; AND THE IMPORTANCE OF A COUNTRY'S DOMENTIC INSTITUIONAL FUNDATIONS FOR A SOUND BANKING SYSTEMS AS A PRECONDITION FOR THE FULL LIBERALISATION...
The internatinal financial community has formulated lessons for itself of the rises of the 1990 s that, in both principle and language, are nearly identical to those that policy makers believed they had lerned from the crises of the 1930 s.
As a matter of capital flows, global finance is as strong as ever. But when it comes to the norms and rules of global finance, the very ideas and laws that sustain the system, th height of this era of blobalisation has already been reached.
Policy makers understand the international financial system very differently in the first decade of a new century.
Caution toward full capital mobility now previls within the international fianancial community.
The IMF, oecd, AND CREDIT-RATING AGENCIES HAVE BEEN CONGRATULATED, OCCATIONALLY BY ONE ANOTHER AND TEHMESELVES, FOR HAVING " LEARNED " VALUABLE LESSONS FROM THE EMERGING MARKET FINANCIAL CRISES AND THEIR APPARENT CONTAGIOUS SPREAD ; THE DANGERS OF EMBRACING HOT MONEY INSTEAD OF LONGER TERM CAPITAL FLOWS ; AND THE IMPORTANCE OF A COUNTRY'S DOMENTIC INSTITUIONAL FUNDATIONS FOR A SOUND BANKING SYSTEMS AS A PRECONDITION FOR THE FULL LIBERALISATION...
The internatinal financial community has formulated lessons for itself of the rises of the 1990 s that, in both principle and language, are nearly identical to those that policy makers believed they had lerned from the crises of the 1930 s.
