In the debate on the benefits and costs of international financial integration recent literature has emphasized thresholds in the development of domestic markets as preconditions to benefitting from international integration. This paper offers an alternative view - that of development of...

Macroeconomic instability is usually associated with increased short-term volatility in key fundamental variables. The recent literature that empirically examines implications of the macroeconomic volatility provides strong evidence of its negative growth effects. Stable macroeconomic...

This paper focuses on the dynamics of international financial integration for a set of 13 industrial countries including Australia over the period 1990 to 2003 by analysing data on the level and composition of foreign assets and liabilities. The study provides insights into the broad trends on...