IDEAS home Printed from https://ideas.repec.org/a/oup/jafrec/v12y2003isupp2p12-52.html
   My bibliography  Save this article

Development of Financial Markets and Macroeconomic Policy

Author

Listed:
  • Peter J. Montiel

Abstract

This paper provides a general overview of the ways that macroeconomic policies can advance or retard financial development, as well as of how financial development can affect the functioning of macroeconomic policies, with a specific focus on how it can alter the mechanisms through which central bank actions can influence domestic economic activity. Understanding the latter is important, because a failure to appreciate how the effects of monetary policy are likely to change as the financial system evolves could make the process of financial development and innovation itself a source of macroeconomic instability. The key findings are that the relative importance of alternative channels of monetary transmission is likely to vary in a systematic way over the course of financial development and that financial development enhances the premium on transparency and predictability of monetary policy. Copyright 2003, Oxford University Press.

Suggested Citation

  • Peter J. Montiel, 2003. "Development of Financial Markets and Macroeconomic Policy," Journal of African Economies, Centre for the Study of African Economies, vol. 12(Supplemen), pages 12-52, September.
    • Handle: RePEc:oup:jafrec:v:12:y:2003:i:supp2:p:12-52
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gries, Thomas & Kraft, Manfred & Meierrieks, Daniel, 2009. "Linkages Between Financial Deepening, Trade Openness, and Economic Development: Causality Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 37(12), pages 1849-1860, December.
    2. Mr. David Hauner, 2006. "Fiscal Policy and Financial Development," IMF Working Papers 2006/026, International Monetary Fund.
    3. Narayan, Paresh Kumar & Narayan, Seema, 2013. "The short-run relationship between the financial system and economic growth: New evidence from regional panels," International Review of Financial Analysis, Elsevier, vol. 29(C), pages 70-78.
    4. Choi, Jae Hoon & Munro, David, 2022. "Market liquidity and excess volatility: Theory and experiment," Journal of Economic Dynamics and Control, Elsevier, vol. 139(C).
    5. Le, Thai-Ha & Tran-Nam, Binh, 2018. "Trade liberalization, financial modernization and economic development: An empirical study of selected Asia–Pacific countries," Research in Economics, Elsevier, vol. 72(2), pages 343-355.
    6. Muhsin KAR & Saban NAZLIOGLU & Huseyin AGIR, 2014. "Trade Openness, Financial Development, and Economic Growth in Turkey: Linear and Nonlinear Causality Analysis," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 8(1), pages 63-86.
    7. Marshall Mays, 2007. "The Importance of Domestic Institutional Investors in Pakistan’s Growing Bond Market," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 3, pages 89-106.

    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:oup:jafrec:v:12:y:2003:i:supp2:p:12-52. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/csaoxuk.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.