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Financial Globalisation, Exchange Rates and Capital Controls in Developing Countries

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  • Vijay Joshi

Abstract

This paper argues that (i) for many developing countries, the optimal external payments regime would be a combination of an intermediate exchange rate with capital controls and (ii) the policy stance and advice of the IMF should reflect this view. The paper uses India as a case-study to illustrate its argument.

Suggested Citation

  • Vijay Joshi, 2003. "Financial Globalisation, Exchange Rates and Capital Controls in Developing Countries," Departmental Working Papers 2003-19, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2003-19
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2003/wp-econ-2003-19.pdf
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    References listed on IDEAS

    as
    1. Prema-chandra Athukorala, 2001. "Crisis and Recovery in Malaysia," Books, Edward Elgar Publishing, number 2340.
    2. Eichengreen, Barry, 1993. "International Monetary Arrangements for the 21st Century," Center for International and Development Economics Research (CIDER) Working Papers 233202, University of California-Berkeley, Department of Economics.
    3. Jeffrey A. Frankel, 1999. "No Single Currency Regime is Right for All Countries or At All Times," NBER Working Papers 7338, National Bureau of Economic Research, Inc.
    4. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 379-408.
    5. Barry Eichengreen & Ricardo Hausmann, 1999. "Exchange rates and financial fragility," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 329-368.
    6. Vijay Joshi, 2003. "India and the Impossible Trinity," The World Economy, Wiley Blackwell, vol. 26(4), pages 555-583, April.
    7. Richard N. Cooper, 1999. "Should Capital Controls be Banished?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 30(1), pages 89-142.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eliane Cristina de Araújo, 2011. "Volatilidade Cambial e Crescimento Econômico: Teorias e Evidências para Economias em Desenvolvimento e Emergentes (1980 e 2007)," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 12(2), pages 187-213.
    2. Daniel Dufourt, 2005. "La politique des économistes et l'économie des politistes à travers l'analyse des crises financières des vingt dernières années," Post-Print halshs-00397319, HAL.
    3. Meri Boskoska, 2007. "Globalization Of The Financial Markets And The Appearance Of Contemporary Financial Crisis," Journal Articles, Center For Economic Analyses, pages 18-31, June.
    4. nnamdi, Kelechi & ifionu, Ebele, 2013. "Exchange rate volatility and exchange rate uncertainty in Nigeria: a financial econometric analysis (1970- 2012)," MPRA Paper 48316, University Library of Munich, Germany, revised 2013.

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    More about this item

    Keywords

    Globalisation; Exchange rate regimes; Impossible Trinity; Capital controls; India; East Asian crisis.;
    All these keywords.

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