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dc.titleWhat's Wrong with International Financial Markets?
dc.contributor.authorFernández-Arias, Eduardo
dc.contributor.authorHausmann, Ricardo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2011-02-04T00:00:00
dc.date.issue2000-08-01T00:00:00
dc.description.abstractRecent financial crises and contagion call into question the wisdom of capital account liberalization. There is consensus that something is terribly wrong in the way international financial markets work for developing countries and that fixing is urgent. But what is wrong? Most views in developed countries identify the problems with too much capital flows, attracted by moral hazard. However, our analysis shows that the role of this distortion is being grossly exaggerated and that, in contrast, the main distortions in international financial markets are associated with capital flows being too little, restricted by sovereign risk, and too volatile because of market failures.
dc.format.extent27
dc.identifier.doihttp://dx.doi.org/10.18235/0010783
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/What-Wrong-with-International-Financial-Markets.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Sector
dc.subject.keywordsinternational finance;WP-429;capital market
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
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