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structural surplus of private savings in relation to private investment. On the one hand, this excess saving is due to people …'s increasing inclination to save in light of rising life expectancy. On the other hand, investment is not keeping pace with the … rising desire to save. The resulting gap between the private desire for wealth and private investment can only be closed by …
Persistent link: https://www.econbiz.de/10012548144
structural surplus of private savings in relation to private investment. On the one hand, this excess saving is due to people …'s increasing inclination to save in light of rising life expectancy. On the other hand, investment is not keeping pace with the … rising desire to save. The resulting gap between the private desire for wealth and private investment can only be closed by …
Persistent link: https://www.econbiz.de/10012585248
Legal restrictions on international capital movements are imposed in many countries in an attempt to (partially) insulate their economies from abroad and pursue some degree of domestic policy independence. But is the imposition of capital controls effective in achieving these goals? We...
Persistent link: https://www.econbiz.de/10003854622
The Impossible Trinity doctrine still holds a powerful sway over policymakers, advisors (particularly the International Monetary Fund [IMF]) and academia. In East Asia over the past decade, however, most countries have been able to maintain open capital markets, monetary policy independence, and...
Persistent link: https://www.econbiz.de/10009379721
Since the 1980s, emerging countries have been urged to welcome foreign capital inflows. The result has often been a pattern of surges, where excessive inflows were followed by damaging "sudden stops" and reversals. This was dramatically evident in the Asian crisis of 1997 - 1998. Since that...
Persistent link: https://www.econbiz.de/10009551418
Similar to Chile in the 1990s, Slovenia has introduced an unremunerated reserve requirement (URR) on financial credits in 1995. We find that the URR has not been effective in reducing overall inflows of foreign capital. Hence, the gain in monetary autonomy has been limited. While the overall...
Persistent link: https://www.econbiz.de/10011475657
This study examines the effects of capital account restrictions on capital flows in nine Asian economies over the period 1995-2005 using panel regressions with fixed effects. The results show that capital controls significantly affect capital flows when such flows are disaggregated by asset type...
Persistent link: https://www.econbiz.de/10013128050
While the initial certainty and stark simplicity of the Impossible Trinity have fuzzed and softened over time, this idea still holds a powerful sway over analysis of exchange rates and in the policy debate on capital flows. Yet the practical evidence suggests that the constraints on policy...
Persistent link: https://www.econbiz.de/10013118751