EconPapers    
Economics at your fingertips  
 

Capital Market Inflation in Emerging Markets: the Cases of Brazil and South Korea

Bruno Bonizzi

PSL Quarterly Review, 2015, vol. 68, issue 273, 115-150

Abstract: This paper investigates the dynamics of capital markets in emerging markets in a period of financial integration. It takes the case of Brazil and South Korea, two key emerging markets in the global economy, to assess the relationship between capital flows and equity prices. This is analysed through Jan Toporowski’s theory of “capital market inflation”, which explains the movements of equity prices in relation to the inflows of funds into the capital market. The main argument put forward is that foreign capital inflows into the emerging equity markets have substantially contributed to create the excess liquidity that gives rise to a process of capital market inflation. This contributes both to extend Toporowski’s theory to the context of emerging financially open countries, and to give a new perspective to the debates over financial globalisation by proposing the theory of capital market inflation as a framework to understand the impacts of capital flows to emerging markets. The empirical evidence available from Brazil and South Korea suggests that this is a consistent and instructive framework of analysis.

Keywords: Finance; Asset price inflation; Foreign investors (search for similar items in EconPapers)
JEL-codes: F36 F65 G12 O57 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/11989/12973 (application/pdf)

Related works:
Working Paper: Capital market inflation in emerging markets: The case of Brazil and South Korea (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:psl:pslqrr:2015:22

Ordering information: This journal article can be ordered from
http://www.pslquarterlyreview.info

Access Statistics for this article

PSL Quarterly Review is currently edited by Alessandro Roncaglia and Carlo D'Ippoliti

More articles in PSL Quarterly Review from Economia civile
Bibliographic data for series maintained by Carlo D'Ippoliti ().

 
Page updated 2025-03-19
Handle: RePEc:psl:pslqrr:2015:22