IDEAS home Printed from
   My bibliography  Save this paper

Pitfalls and Potential of Financial Liberalisation


  • Fry, M.J.


In this paper, I attempt to provide three markers down the road of financial liberalisation to which Cyprus is committed in its plans to join the European Union. The common theme lies in the importance of a level playing field. First, in my opinion, the central bank of Cyprus could usefully promote development of a secondary market for government debt; the government should certainly compete with other borrowers on a level playing field. Second, a level playing field for foreign and domestically financed investment is essential for the efficient allocation of foreign capital inflows. Finally, a level playing field necessitates the exclusion of uneven,i.e., insolvent, players; this is the key role of prudential supervision and regulation in the development process.

Suggested Citation

  • Fry, M.J., 1997. "Pitfalls and Potential of Financial Liberalisation," Papers 97-05, University of Birmingham - International Financial Group.
  • Handle: RePEc:fth:birmif:97-05

    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.

    References listed on IDEAS

    1. Glassman, Debra, 1987. "Exchange rate risk and transactions costs: Evidence from bid-ask spreads," Journal of International Money and Finance, Elsevier, vol. 6(4), pages 479-490, December.
    2. Hooper, Peter & Kohlhagen, Steven W., 1978. "The effect of exchange rate uncertainty on the prices and volume of international trade," Journal of International Economics, Elsevier, vol. 8(4), pages 483-511, November.
    3. Hamilton, C.B. & Winters, L.A., 1992. "Opening Up International Trade in Eastern Europe," Papers 511, Stockholm - International Economic Studies.
    4. George S Tavlas & Yusuru Ozeki, 1991. "The Japanese Yen as an International Currency," IMF Working Papers 91/2, International Monetary Fund.
    5. Kenen, Peter B & Rodrik, Dani, 1986. "Measuring and Analyzing the Effects of Short-term Volatility in Real Exchange Rates," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 311-315, May.
    6. Takagi, Shinji, 1988. "A basket peg policy: Operational issues for developing countries," World Development, Elsevier, vol. 16(2), pages 271-279, February.
    7. Helmut Reisen & Axel Trotsenburg, 1988. "Should the Asian NICs peg to the yen?," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 23(4), pages 172-177, July.
    Full references (including those not matched with items on IDEAS)

    More about this item



    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General


    Access and download statistics


    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:fth:birmif:97-05. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.