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Globalization and Capital Markets

  • Maurice Obstfeld
  • Alan M. Taylor

The ebb and flow of international capital since the nineteenth century illustrates recurring difficulties, as well as the alternative perspectives from which policymakers have tried to confront them. This paper is devoted to documenting these vicissitudes quantitatively and explaining them. Economic theory and economic history together can provide useful insights into events of the past and deliver relevant lessons for today. We argue that theories of how international capital mobility has evolved must be understood within the framework of the basic policy trilemma constraining an open economy's choice of monetary regime.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8846.

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Date of creation: Mar 2002
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Publication status: published as Globalization and Capital Markets , Maurice Obstfeld, Alan M. Taylor. in Globalization in Historical Perspective , Bordo, Taylor, and Williamson. 2003
Handle: RePEc:nbr:nberwo:8846
Note: DAE IFM
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