Global capital market volatility and the developing countries: lessons from the East Asian crisis

摘要

The globalisation of capital markets is now an undisputed lad, but opinions differ widely as to the origins of the evident volatility of exchange rates and capital flows, and the proper means of stabilising them. Even though there is broad agreement that integration to international capital markets has considerable potential for increasing investment, growth and employment, there is a growing concern that the impact of this volatility on developing countries - particularly but not exclusively 'emerging market economies - is deleterious The present asset deflation and currency collapse in East Asia have brought this topic into the headlines, raising public action issues which not only are important m themselves but also throw light on tine broader question of the social benefits of economic globalisation, when there is such great asymmetry between large firms and states on the one hand, and small nations and the poor on the other; and by extension the type of institutions, which would be required in a truly global economy.