Capital Controls, Exchange Rates, and Monetary Policy in the World Economy

The essays collected in this volume discuss the impact of increased capital mobility on macroeconomic performance.

Sebastian Edwards (Edited by)

9780521597111, Cambridge University Press

Paperback, published 13 June 1997

448 pages
23.4 x 15.6 x 2.3 cm, 0.62 kg

'This is a timely collection covering a well-chosen range of topics and countries, attempting in several papers not only to report the broad features of countries' experiences but also to provide some preliminary tests of central relationships. The collection as a whole offers a good balance of theory, history, and quantitative analysis.' John F. Helliwell, University of British Columbia

The essays collected in this volume, written by well-known academics and policy analysts, discuss the impact of increased capital mobility on macroeconomic performance. The authors highlight the most adequate ways to manage the transition from a semi-closed economy to a semi-open one. Additionally, issues related to the measurement of openness, monetary control, optimal exchange rates regimes, sequencing of reforms, and real exchange rate dynamics under different degrees of capital mobility are carefully analyzed. The book is divided into four parts after the editor's introduction. The first part contains the general analytics of monetary policy in open economies. Parts two to four deal with diverse regional experiences, covering Europe, the Asian Pacific region, and Latin America. The papers on which the essays are based were originally presented at a conference on Monetary Policy in Semi-Open Economies, held in Seoul, Korea in November 1992.

Introduction Sebastian Edwards
Part I. Monetary policy and Stabilization in Open Economies: 1. Stabilization and liberalization policies in semi-open economies Robert Mundell
2. Monetary regime choice for a semi-open country Jeffrey A. Frankel
3. Capital account liberalization: bringing policy in line with reality Manuel Guitián
Part II. Capital Mobility and Macroeconomic Policy in Europe: 4. The lessons of European monetary and exchange rate experience Patrick Minford
5. Experience with controls on international capital movements in OECD countries: solution or problem for monetary policy? Jeffrey R. Shafer
6. Real exchange rates and capital flows: EMS experiences Alberto Giovannini
7. Monetary policy after German unification Wilhelm Nölling
Part III. Capital Controls and Macroeconomic Policy in the Asia-Pacific Region: 8. Capital movements, real asset speculation, and macroeconomic adjustment in Korea Yung Chul Park and Won-Am Park
9. The determinants of capital controls and their effects on trade balance during the period of capital market liberalization in Japan Shin-ichi Fukuda
10. Capital mobility and economic policy Michael Dooley
11. Monetary and exchange rate policies 1973–1991: the Australian and New Zealand experience Victor Argy
Part IV. Capital Mobility and Exchange Rates in Latin America: 12. Exchange rates, inflation, and disinflation: Latin American experiences Sebastian Edwards
13. Capital inflows to Latin America with reference to the Asian experience Guillermo A. Calvo, Leonardo Leiderman and Carmen M. Reinhart
14. Opening the capital account: costs, benefits and sequencing James A. Hanson
Index.

Subject Areas: Macroeconomics [KCB]