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‘Unequal Partners’: The Role of International Financial Flows and the Exchange Rate Regime

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  • Kam, Eric
  • Smithin, John

Abstract

This paper examines themes central to designing policies to promote growth and development in economies characterized by capital market globalization and integration. Unequal partners include less-developed nations whose most important need is development and middle-income nations whose domestic markets create a competitive disadvantage. Macroeconomic concepts such as domestic monetary policy, financial flows and the choice of exchange rate regime apply to each nation type. Strategies characterized as “monetary mercantilism” are employed historically by nations that have succeeded in achieving stronger economic growth, which contradicts austerity-led policies favored by international bureaucracies.

Suggested Citation

  • Kam, Eric & Smithin, John, 2008. "‘Unequal Partners’: The Role of International Financial Flows and the Exchange Rate Regime," The Journal of Economic Asymmetries, Elsevier, vol. 5(1), pages 125-137.
    • Handle: RePEc:eee:joecas:v:5:y:2008:i:1:p:125-137
    DOI: 10.1016/j.jeca.2008.01.010
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    References listed on IDEAS

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    1. Marc Lavoie, 2000. "A Post Keynesian View of Interest Parity Theorems," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(1), pages 163-179, September.
    2. John Smithin, 1994. "Controversies In Monetary Economics," Books, Edward Elgar Publishing, number 412.
    3. Eric Kam & John Smithin, 2004. "Monetary policy and demand management for the small open economy in contemporary conditions with (perfectly) mobile capital," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(4), pages 679-694.
    4. Paraskevopoulos, Christos C. & Paschakis, John & Smithin, John, 1996. "Is monetary sovereignty an option for the small open economy?," The North American Journal of Economics and Finance, Elsevier, vol. 7(1), pages 5-18.
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    More about this item

    Keywords

    E10; F31; F33; F36; F41; Interest Rates; Exchange Rates; Globalization; Macroeconomic Policy;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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