International Initiatives to Bring Stability to Financial Integration

IADB Research Department Working Paper No. 402

23 Pages Posted: 17 Jan 2001

See all articles by Eduardo Fernandez-Arias

Eduardo Fernandez-Arias

Inter-American Development Bank (IDB)

Ricardo Hausmann

Harvard University - Harvard Kennedy School (HKS)

Multiple version iconThere are 3 versions of this paper

Date Written: March 1999

Abstract

Financial liberalization and integration have generated disappointing results. They were supposed to set up a win-win situation: capital would flow from capital-abundant, low-return, aging industrial countries to capital-scarce, high-return, young emerging countries. Growth in receiving countries would accelerate and both giver and receiver would be happier, while everyone's diversification opportunities improved. As a bonus, emerging market policymakers would be disciplined by losing access to a captive local financial market.

Keywords: international financial architecture, financial crisis, financial contagion

JEL Classification: F33, F34, G15, O19

Suggested Citation

Fernandez-Arias, Eduardo and Hausmann, Ricardo, International Initiatives to Bring Stability to Financial Integration (March 1999). IADB Research Department Working Paper No. 402, Available at SSRN: https://ssrn.com/abstract=237453 or http://dx.doi.org/10.2139/ssrn.237453

Eduardo Fernandez-Arias (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue, NW
Research Department
Washington, DC 20577
United States
202-623-3783 (Phone)
202-623-2481 (Fax)

Ricardo Hausmann

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Mailbox 34
Cambridge, MA 02138
United States
617-496-3740 (Phone)
617-496-8753 (Fax)

HOME PAGE: http://www.hks.harvard.edu/about/faculty-staff-directory/ricardo-hausmann

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
199
Abstract Views
1,891
rank
96,915
PlumX Metrics