Developing Essential Financial Markets in Smaller Economies; Stylized Facts and Policy Options

This paper surveys the foreign exchange markets, money and secondary government security markets, and stock exchanges in 107 smaller economy countries. The underdevelopment of these markets impedes risk transfer, monetary policy, corporate financing, and the capacity to absorb capital inflows. This study marks a first step toward formulating policies to develop essential smaller economy financial markets by documenting the stylized facts and presenting a framework for assessing the policy issues.

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Year of publication:	2008-12-16
Institutions:	International Monetary Fund (IMF) ; International Monetary Fund
Subject:	Banking systems \| Central bank policy \| Financial sector \| Small states \| Stock markets \| foreign exchange \| exchange rate \| foreign exchange market \| equity markets \| stock exchange \| government securities \| financial markets \| stock market \| money market \| regional integration \| central bank \| stock exchanges \| financial market \| exchange markets \| foreign exchange markets \| equity market \| investors \| interbank market \| financial market development \| bond \| floating exchange rate \| bonds \| exchange rate variability \| hedging \| daily exchange rate \| money markets \| exchange rate regime \| forward market \| hedging instruments \| financial stability \| institutional investors \| government securities market \| securities market \| excess liquidity \| exchange rate flexibility \| securities markets \| financial systems \| government securities markets \| market integration \| financial globalization \| bond markets \| banking \| fixed exchange rate \| foreign exchange operations \| exchange operations \| financial sector development \| private equity \| exchange rate movements \| exchange rate risk \| exchange swaps \| financial intermediaries \| bond market \| foreign exchange transactions \| exchange restrictions \| exchange rates \| financial system \| financial services \| exchange transactions \| monetary policy \| foreign exchange swaps \| financial institutions \| government bond \| exchange rate arrangements \| exchange rate system \| liquidity management \| regulatory framework \| regional markets \| government security \| banking sector \| inflation \| trade integration \| monetary instruments \| venture capital \| initial public offerings \| international financial statistics \| capital inflows \| monetary instrument \| bank liquidity \| monetary transmission \| monetary transmission mechanism \| exchange arrangements \| domestic capital \| foreign exchange sales \| stock market development \| exchange rate volatility \| fixed exchange rate regime \| exchange sales \| floating exchange rate regime \| banking system \| flexible exchange rate \| exchange rate regimes \| hedge \| domestic capital markets \| money market yield curve \| exchange controls \| exchange auctions \| foreign exchange auctions \| financial intermediation \| exchange rate changes \| derivatives markets \| stock prices \| corporate bonds \| foreign exchange reserves \| stock market liquidity \| exchange reserves \| foreign exchange surrender requirements \| derivative \| government bond market \| international standards \| financial policies \| deposit insurance \| foreign investment \| exchange surrender requirements \| international finance corporation \| corporate bond \| stockbrokers \| international finance \| government bond markets \| new york stock exchange \| government bonds \| domestic money market \| flexible exchange rate system \| exchange rate arrangement \| financial reform \| local bond \| stock market trading \| financial structure \| bond market development \| regional initiatives \| risk diversification \| common market \| regional approach \| trading activities \| domestic market \| global markets \| national markets \| trading costs \| fixed exchange rate countries \| bank publications \| floating exchange rate regimes \| exchange risk \| integrated markets \| regional market \| integration efforts \| international investors \| asset bubbles \| foreign investors \| commercial banks \| fixed costs \| long-term government securities \| otc transactions \| investor protection \| investment restrictions \| mutual funds \| local capital markets \| venture capital funds \| investment banks \| foreign ownership \| interbank money markets \| private pension \| monetary union \| liquid asset \| open market operations \| credit market \| monetary framework \| reserve requirement \| securities auctions \| monetary conditions \| monetary policy decisions \| disclosure requirements \| trading of securities \| dematerialized securities \| securities issues \| derivative markets \| national bank \| securities settlement \| contract enforcement \| markets for bonds \| securities trading \| government securities auctions \| foreign exchange risk \| multiple currency practices \| financial regulation \| exchange system liberalization \| restrictions on capital account transactions \| financial structures \| freely floating exchange rate \| developing government bond \| corporate bond markets \| exchange rate developments \| treasury bonds \| domestic capital market \| exchange rate movement \| local bond market \| domestic financial markets \| exchange control \| developing government bond markets \| risk-free interest rate \| exchange rate policy \| financial instruments \| international bonds \| development of bond markets \| exchange rate shocks \| financial derivatives \| fixed exchange rate system \| financial contracts \| financial resources \| emerging stock market \| exchange rate variations \| forward exchange \| exchange purchases \| exchange rate mechanism \| interest rate controls \| derivatives instruments \| outstanding bonds \| stock index \| currency swaps \| currency areas \| money market funds \| cash flows \| exchange options \| derivatives market activity \| exchange rate peg \| financial vulnerabilities \| exchange rate exposure \| corporate bond market \| stock trading \| foreign exchange purchases \| bank bonds \| local bond markets \| systemic banking crises \| domestic bond markets \| foreign exchange controls \| emerging market stock \| exchange rate fluctuations \| bank involvement \| bank risk \| bank note \| revenue source \| bank cash \| segmentation \| bank interventions \| bank of israel \| bank takes \| macroeconomic stability \| bank intervention \| excess demand \| financial liberalization \| derivatives market \| multiple exchange rates \| foreign exchange rates \| globalization \| domestic bond \| liberalization of capital flows \| bank branches \| bank policies \| bank assets \| international financial

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Extent:	application/pdf
Series:	IMF Occasional Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series Occasional Papers Number 265 8 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011245902