Better late than never I guess, but we’ve known since at least the mid-1990s that unfettered capital flows can be terribly disruptive to developing economies, and we're increasingly realizing that they can also be disruptive to...
ft.com/content/b53468… via @FinancialTimes
ft.com/content/b53468… via @FinancialTimes
@FinancialTimes ...developed economies, although it’ll probably take another decade or so before the IMF recognizes this.
Where I disagree with Georgieva is her claim that it is the vast extent of dollar indexing of trade and debt that makes capital flows “shock amplifiers”. I argue in my...
Where I disagree with Georgieva is her claim that it is the vast extent of dollar indexing of trade and debt that makes capital flows “shock amplifiers”. I argue in my...
@FinancialTimes ...2001 book that it is when balance sheets are structured pro-cyclically that exogenous shocks are amplified, and currency denomination is only way in which this can occur. More importantly, most major developing-country economists in Latin...
amazon.com/Volatility-Mac…
amazon.com/Volatility-Mac…
@FinancialTimes ...America, India, and Eastern Europe understood during the first half of the 20th Century, long before dollar indexation was a “problem”, that speculative capital flows could easily overwhelm economic fundamentals in developing countries, and many developed-country economists...
@FinancialTimes ...agreed. On that note check out Eric Helleiner’s excellent book on Bretton Woods.
amazon.com/Forgotten-Foun…
amazon.com/Forgotten-Foun…
