The industrialized world has recently witnessed a dramatic increase in the
volume of international capital movements, in the forms of borrowing and lending, bond
transactions and foreign direct investment.
Many non-OECD countries have also embarked on extensive programs of capital
market liberalization. Papers in this volume--the proceedings of a CEPR joint conference
with the Bank of Israel and Tel Aviv University's Pinhas Sapir Center for
Development--examine the implications of these developments for economic fluctuations and
fiscal and monetary policies under alternative exchange rate regimes, as well as other
topics of contemporary interest.
Table of Contents
List of figures
List of tables
Preface
Acknowledgements
List of conference participants
1 Introduction 1
2 Are industrial-country consumption risks globally diversified?
13
3 Business-cycle volatility and openness: an exploratory
cross-sectional analysis 48
4 The robustness of macroeconomic indicators of capital mobility
83
5 An interpretation of recent research on exchange rate target zones
121
6 Some evidence on a strategic model of exchange rate bands
156
7 Exchange rate volatility, uncertainty, and investment: an empirical
investigation 185
8 Foreign finance and economic growth: an empirical analysis
217
9 Convergence in growth rates: a quantitative assessment of the
role of capital mobility and international taxation 237
10 Will government policy magnify capital flow volatility?
263
11 The political economy of capital controls 289
12 Capital controls and capital account liberalisation in industrial
countries 329
Index 351
308 pages , Paperback