Financial liberalisation
Capital Mobility
Capital controls
Openness: Industrialised countries
Openness: emerging / developing countries
Flows: industrialised countries
Reminder: the trinity
The end of Keynesian norms
Monetarism (again)
Monetarism is against capital controls.
Washington consensus
The ten policy commandments
Big change in mentality.
Diffusion (I): spread of ideas
Interest-based mechanisms
- Industrialized Countries: Competitive Deregulation.
- Developing Countries: Competition for FDI.
UK / US Lead
Diffusion (II): competitive deregulation
They used a survival model, survival function basically works like life expectancy in a given situation.
Crises and reorientation
Multinational corporations
Host country effects
Diffusion (III): Competition for FDI
Mechanism: see slide 16 Or: Imitation? Learning? External Pressure?
The role of the IMF
- Key Developments: Breakdown of Bretton Woods (1973) and the rise of the G7; recurrent financial crises: Latin American Debt crisis, (1982ff); post-communist transitions (1990ff); Asian Financial Crisis (1997-98); emerging markets crises (1990s/2000s); Eu- ropean crisis (2008ff).
- Revival of the Fund: sovereign debt management, capital account crisis management, economic transitions and reform.
The IMF
IMF Programs
Structural conditions
Why?
Conclusion
