Globalization of Financial Markets and Implications for Pacific Basin Developing Countries

Author/Editor:

David John Goldsbrough ; Ranjit S Teja

Publication Date:

March 1, 1991

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.

Series:

Working Paper No. 91/34

Subject:

English

Publication Date:

March 1, 1991

ISBN/ISSN:

9781451978780/1018-5941

Stock No:

WPIEA0341991

Format:

Paper

Pages:

28

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