Once upon a time, economists saw capital account liberalization--the
free and unrestricted flow of capital in and out of countries--as
unambiguously good. Good for debtor states, good for the world
economy. No longer. Spectacular banking and currency crises in recent
decades have shattered the consensus. In this remarkably clear and
pithy volume, one of Europe's leading economists examines these
crises, the reforms being undertaken to prevent them, and how global
financial institutions might be restructured to this end. Jean Tirole
first analyzes the current views on the crises and on the reform of
the international financial architecture. Reform proposals often treat
the symptoms rather than the fundamentals, he argues, and sometimes
fail to reconcile the objectives of setting effective financing
conditions while ensuring that a country "owns" its reform program. A
proper identification of market failures is essential to reformulating
the mission of an institution such as the IMF, he emphasizes. Next he
adapts the basic principles of corporate governance, liquidity
provision, and risk management of corporations to the particulars of
country borrowing. Building on a "dual- and common-agency
perspective," he revisits commonly advocated policies and considers
how multilateral organizations can help debtor countries reap enhanced
benefits while liberalizing their capital accounts. Based on the Paolo
Baffi Lecture the author delivered at the Bank of Italy, this
refreshingly accessible book is teeming with rich insights that
researchers, policymakers, and students at all levels will find
indispensable.
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Produktdetaljer
ISBN
9781400828524
Publisert
2014
Utgiver
Vendor
Princeton University Press
Språk
Product language
Engelsk
Format
Product format
Digital bok
Forfatter