Capital account liberalization and financial globalization, 1890–1999: a synoptic view

✍ Scribed by Dennis P. Quinn

• Book ID: 102276380
• Publisher: John Wiley and Sons
• Year: 2003
• Tongue: English
• Weight: 361 KB
• Volume: 8
• Category: Article
• ISSN: 1076-9307
• DOI: 10.1002/ijfe.209

✦ Synopsis

Abstract

An indicator of financial openness spanning the period 1890–1999 is used to evaluate policies towards the capital account of the balance of payments. Findings include that: financial globalization was deeper in 1890–1913 than subsequently; countries with liberal capital account policies recovered more quickly from the Great Depression than countries that restricted capital account transactions; the correlation between democracy and capital account openness was negative or zero during the gold standard era, in contrast to subsequent periods, when it has tended to be positive; and countries in geographic proximity to one another have tended to behave similarly in their policies towards the capital account. Copyright © 2003 John Wiley & Sons, Ltd.