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Financial Innovations in International Financial Markets

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  • Richard M. Levich

Abstract

The central theme of this paper is that financial innovation has become a major force effecting the United States and other developed economies. The common features of the process include product innovation, securitization, liberalization of domestic financial market practices, globalization of markets, and increased competition among financial institutions. The paper offers a review of the product and process changes that have occurred in international financial markets, an analysis of the factors leading to these changes, and an examination of the implications for both financial market participants and macroeconomic policy makers.

Suggested Citation

  • Richard M. Levich, 1987. "Financial Innovations in International Financial Markets," NBER Working Papers 2277, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:2277
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    References listed on IDEAS

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    1. Cooper, Ian, 1986. "Innovations: New Market Instruments," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 2(4), pages 1-17, Winter.
    2. Gunter Dufey & Ian H Giddy, 1981. "Innovation in the International Financial Markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 12(2), pages 33-51, June.
    3. Dooley, Michael P & Isard, Peter, 1980. "Capital Controls, Political Risk, and Deviations from Interest-Rate Parity," Journal of Political Economy, University of Chicago Press, vol. 88(2), pages 370-384, April.
    4. K. Alec Chrystal, 1984. "International banking facilities," Review, Federal Reserve Bank of St. Louis, vol. 66(Apr), pages 5-11.
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    Cited by:

    1. Winston Moore, 2013. "Quantifying the effects of capital controls in small states," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 6(2), pages 190-203, September.
    2. Michael D. Bordo & Bruce Mizrach & Anna J. Schwartz, 1998. "Real versus Pseudo-International Systemic Risk Some Lessons from History," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 31-58.
    3. Winston Moore, 2014. "Managing The Process Of Removing Capital Controls: What Does The Literature Suggest?," Journal of Economic Surveys, Wiley Blackwell, vol. 28(2), pages 209-237, April.
    4. Annie Koh & Richard M. Levich, 1989. "Synthetic Eurocurrency Interest Rate Futures Contracts: Theory and Evidence," NBER Working Papers 3055, National Bureau of Economic Research, Inc.
    5. Watkins, Alfred J., 1989. "Latin America's prospects in the financial markets," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    6. A. D. Cosh & Alan Hughes & Ajit Singh, 1989. "Openness, Innovation and Share Ownership: The Changing Structure of Financial Markets," WIDER Working Paper Series wp-1989-074, World Institute for Development Economic Research (UNU-WIDER).

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