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Managing Financial Instability in Emerging Markets: A Keynesian Perspective

Author

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  • Yilmaz Akyuz

    (UNCTAD)

Abstract

The Keynesian analysis of financial stability as developed by Hyman Minsky, provides considerable insights into understanding the nature and dynamics of boom-bust cycles driven by international capital flows in emerging markets. Its main policy conclusion that financial control rather than macroeconomic policy holds the key to financial stability is equally valid. There is however, need to develop a new approach to financial control and place greater emphasis on managing capital inflows than has hitherto been the case

Suggested Citation

  • Yilmaz Akyuz, 2008. "Managing Financial Instability in Emerging Markets: A Keynesian Perspective," Working Papers 2008/4, Turkish Economic Association.
  • Handle: RePEc:tek:wpaper:2008/4
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    File URL: http://www.tek.org.tr/dosyalar/ODTUKEYNESTFIN.pdf
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    References listed on IDEAS

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    Cited by:

    1. Shafaeddin, Mehdi, 2008. "South-South Regionalism And Trade Cooperation In The Asia-Pacific Region," MPRA Paper 10886, University Library of Munich, Germany.

    More about this item

    Keywords

    Financial instability; countercyclical policy; financial regulation;

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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