Capital inflows, financial repression, and macroeconomic policy in India since the reforms

The Financial Crisis and Global Policy Reforms

Barry Eichengreen’s paper pushed me to take a different look at the crisis and I encourage everyone to read the paper carefully . I will separate these very brief remarks into three parts . First, I will review his basic observations, concentrating on what I see as his more novel points . Next I will present one picture that informs my thinking on the role of global imbalances in the crisis . F...

Changes in capital punishment policy since 1939.

RMB Revaluation and Speculative Capital Inflows: Policy Options

We build a monetary model to show how expected revaluations lead to the instability of a pegged exchange rate regime. This model assumes current account convertibility and some degree of capital control, and fundamentally sound domestic policies and economy, as is the case in China. The model demonstrates that market-oriented interest rates can act as an automatic stabilizer to ease revaluation...

The macroeconomic effects of debt- and equity-based capital inflows ¬リニ

This paper considers whether debt-based capital inflows have different effects onmany shortrun macroeconomic indicators than equity-based capital inflows. Using external instruments in a structural VAR for identification, we estimate the response of domestic variables like the output gap, inflation, the exchange rate, stock prices, credit growth, and interest rates to an exogenous shock to debt...

Financial Reforms and Capital Flows: Insights from General Equilibrium

As a result of debt enforcement problems, many high-productivity firms in emerging economies are unable to pledge enough future profits to their creditors and this constrains the financing they can raise. Many have argued that, by relaxing these credit constraints, reforms that strengthen enforcement institutions would increase capital flows to emerging economies. This argument is based on a pa...