External Financial Markets, Capital Mobility and Monetary Independence

Susan Howson

Chapter 5 in International Monetary Problems and Supply-Side Economics, 1986, pp 84-107 from Palgrave Macmillan

Abstract: Abstract The rapid growth of external financial markets (the eurocurrency markets) since the early 1970s has contributed greatly to the financial integration of the world economy. By increasing the mobility of capital across international borders the existence of external financial markets — markets for financial assets located outside the countries in whose currency the assets are denominated — also appears to threaten the abilities of the monetary authorities of small open economies to pursue independent monetary policies. This paper considers the question of the extent to which these markets have increased the international mobility of short-term capital and whether the resulting degree of capital mobility makes it impossible for small open economies to pursue independent monetary policies.

Keywords: Monetary Policy; Capital Mobility; Small Open Economy; Foreign Asset; Reserve Requirement (search for similar items in EconPapers)
Date: 1986
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:pal:palchp:978-1-349-18392-0_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349183920

DOI: 10.1007/978-1-349-18392-0_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().