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On the Roles of International Financial Markets and Their Relevance for Economic Policy


  • Stockman, Alan C


A general equilibrium approach to international finance and macroeconomics has been developed. Recent work associated with this development provides useful tools for interpreting evidence and evaluating alternative policy options. Important issues to which these advances have been applied include the choice of an exchange rate system; the high variability of exchange rates; the effects of budget deficits, sterilized foreign exchange market intervention, and monetary and fiscal policies; the causes and consequences of large and variable current account deficits or surpluses and their connections with exchange rates; and the development of more open and sophisticated international financial markets. Copyright 1988 by Ohio State University Press.

Suggested Citation

  • Stockman, Alan C, 1988. "On the Roles of International Financial Markets and Their Relevance for Economic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 20(3), pages 531-549, August.
  • Handle: RePEc:mcb:jmoncb:v:20:y:1988:i:3:p:531-49

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    References listed on IDEAS

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    Cited by:

    1. Daniele Checchi, 1992. "What are the Real Effects of Liberalizing International Capital Movements?," Open Economies Review, Springer, vol. 3(1), pages 83-125, February.
    2. Barari, Mahua, 1992. "Asset markets, stochastic policy and international trade," ISU General Staff Papers 1992010108000010972, Iowa State University, Department of Economics.
    3. Hernandez, Leonardo & Rudolph, Heinz, 1995. "Sustainability of private capital flows to developing countries : Is a generalized reversal likely?," Policy Research Working Paper Series 1518, The World Bank.
    4. Gregory Birg & Brian M. Lucey, 2006. "Integration Of Smaller European Equity Markets : A Time-Varying Integration Score Analysis," The Institute for International Integration Studies Discussion Paper Series iiisdp136, IIIS.
    5. Rughoo, Aarti & You, Kefei, 2016. "Asian financial integration: Global or regional? Evidence from money and bond markets," International Review of Financial Analysis, Elsevier, vol. 48(C), pages 419-434.
    6. Abdelaziz Rouabah, 2005. "Les déterminants du solde de la balance des transactions courantes au Luxembourg," BCL working papers 13, Central Bank of Luxembourg.
    7. Aggarwal, Raj & Schirm, David C., 1998. "Asymmetric impact of trade balance news on asset prices," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 8(1), pages 83-100, January.
    8. Alper Guzel, H. & Kulshreshtha, Surendra N., 1995. "Effects of real exchange rate changes on Canadian agriculture: A general equilibrium evaluation," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 639-657, December.
    9. Kearney, Colm & Lucey, Brian M., 2004. "International equity market integration: Theory, evidence and implications," International Review of Financial Analysis, Elsevier, vol. 13(5), pages 571-583.
    10. Leonardo Hernández & Heinz Rudolph, 1997. "Sustainability of Private Capital Flows to Developing Countries: Is a Generalized Reversal Likely?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 34(102), pages 237-266.

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