IDEAS home Printed from https://ideas.repec.org/a/eej/eeconj/v31y2005i3p407-419.html
   My bibliography  Save this article

Soros on International Capital Markets and Developing Economies: Multiple Equilibria and the Role of Policy

Author

Listed:
  • Thomas I. Palley

Abstract

George Soros' views on financial markets are complex and at odds with most of the economics profession, marking him as an intellectual iconoclast. This paper explores Soros' thinking about financial markets, with special emphasis on his views regarding the shortcomings of the current international financial system and its treatment of developing countries. His thinking on developing countries and the international financial system is represented in terms of a model of multiple equilibria. The model is then applied to analyze Brazil's current financial problems, and policies for escaping the current "bad" high interest rate equilibrium are explored. Soros' analysis of financial markets and Brazil's financial predicament are suggestive of how Brazil might escape its current high interest rate trap. More broadly, Soros' analysis of financial markets suggests a need for policy makers to reconsider how these markets operate, which may in turn result in rethinking the role and relevance of capital controls.

Suggested Citation

  • Thomas I. Palley, 2005. "Soros on International Capital Markets and Developing Economies: Multiple Equilibria and the Role of Policy," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 407-419, Summer.
    • Handle: RePEc:eej:eeconj:v:31:y:2005:i:3:p:407-419
    as

    Download full text from publisher

    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume31/V31N3P407_419.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Thomas I. Palley, 1993. "Uncertainty, Expectations, and The Future: If We Don’t Know the Answers, What Are the Questions?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 16(1), pages 3-18, September.
    2. Grabel, Ilene, 2000. "The Political Economy of 'Policy Credibility': The New-Classical Macroeconomics and the Remaking of Emerging Economies," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(1), pages 1-19, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marangos, John, 2006. "Developing a civilised society in transition economies: The Post Keynesian paradigm," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(4), pages 660-681, August.
    2. Hyungna Oh & Jong Ho Hong, 2014. "Citizens' Distrust in Government and Project Implementation in the Public Sector," Korean Economic Review, Korean Economic Association, vol. 30, pages 25-40.
    3. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
    4. Ha-Joon Chang & Ali Cheema & L. Mises, 2002. "Conditions For Successful Technology Policy In Developing Countries—Learning Rents, State Structures, And Institutions," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 369-398.
    5. Groenewegen, John, 2022. "Institutional form (blueprints) and institutional function (process): Theoretical reflections on property rights and land," Land Use Policy, Elsevier, vol. 121(C).
    6. Thomas Edward Flores & Irfan Nooruddin, 2009. "Democracy under the Gun Understanding Postconflict Economic Recovery," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(1), pages 3-29, February.
    7. Thomas Edward Flores & Irfan Nooruddin, 2011. "Credible Commitment in Post-Conflict Recovery," Chapters, in: Christopher J. Coyne & Rachel L. Mathers (ed.), The Handbook on the Political Economy of War, chapter 23, Edward Elgar Publishing.
    8. Thomas I. Palley, 2011. "Quantitative Easing: A Keynesian Critique," Working Papers wp252, Political Economy Research Institute, University of Massachusetts at Amherst.
    9. Palley, Thomas, 2017. "A theory of economic policy lock-in and lock-out via hysteresis: Rethinking economists' approach to economic policy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-18.
    10. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875.
    11. Thomas I. Palley, 2009. "Rethinking the economics of capital mobility and capital controls," Brazilian Journal of Political Economy, Center of Political Economy, vol. 29(3), pages 15-34.
    12. Alice Sindzingre, 2003. "Liberalisation, Multilateral Institutions and Public Policies : The Issue of Sovereignty In Sub-Saharan Africa," Mondes en développement, De Boeck Université, vol. 123(3), pages 23-56.
    13. Christian Schoder, 2015. "Methodological, internal and ontological inconsistencies in the conventional micro-foundation of post-Keynesian theory," Working Papers 1518, New School for Social Research, Department of Economics.
    14. Robert Pollin, 2002. "Globalization and the Transition to Egalitarian Development," Working Papers wp42, Political Economy Research Institute, University of Massachusetts at Amherst.
    15. Constantinos Alexiou & Joseph G. Nellis, 2016. "Investment Decisions within the Context of Financialization: Cointegration Evidence from the UK Economy," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 63(1), pages 113-133, March.
    16. Ilene GRABEL, 2004. "Trip Wires And Speed Bumps: Managing Financial Risks And Reducing The Potential For Financial Crises In Developing Economies," G-24 Discussion Papers 33, United Nations Conference on Trade and Development.
    17. Ran Liu & Yuhang Jia, 2021. "Resilience and Circularity: Revisiting the Role of Urban Village in Rural-Urban Migration in Beijing, China," Land, MDPI, vol. 10(12), pages 1-13, November.
    18. Wang, Weiye & Liu, Jinlong, 2022. "Lessons of government centralization and credibility: A qualitative case-study of administrative change in Jiuzhaigou Nature Reserve, China (1982–2018)," Land Use Policy, Elsevier, vol. 113(C).
    19. Erin Lockwood, 2021. "The international political economy of global inequality," Review of International Political Economy, Taylor & Francis Journals, vol. 28(2), pages 421-445, March.
    20. M Cruz, 2003. "A Minskyian Crisis: An Application to the 1994-95 Mexican Experience," Economics Discussion Paper Series 0325, Economics, The University of Manchester.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eej:eeconj:v:31:y:2005:i:3:p:407-419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Matheson, College of the Holy Cross (email available below). General contact details of provider: https://edirc.repec.org/data/eeaa1ea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.