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Getting it Right: What to Reform in International Financial Markets

Author

Listed:
  • Ricardo Hausmann
  • Eduardo Fernández-Arias

Abstract

Our review of the main proposals on international financial architecture currently under consideration gives reasons for concern that excessive emphasis on improving stability by impeding capital flows will have a deleterious development impact. Sustainable development requires initiatives addressing the failures of international financial markets that make capital flows so small and volatile. Our analysis identifies a number of alternative initiatives and principles to get them right in connection with official support, private sector participation, and reforms to the institutional framework. However, the fact that some of these efficient reforms entail financial risks to supporting developed countries contributes to lack of consensus.

Suggested Citation

  • Ricardo Hausmann & Eduardo Fernández-Arias, 2000. "Getting it Right: What to Reform in International Financial Markets," Research Department Publications 4223, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:4223
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    References listed on IDEAS

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    Cited by:

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    3. Nunnenkamp, Peter, 2000. "Boom, bust, recovery – What next in private capital flows to emerging markets?," Kiel Discussion Papers 362, Kiel Institute for the World Economy (IfW Kiel).

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