IDEAS home Printed from https://ideas.repec.org/p/oec/ecoaaa/37-en.html
   My bibliography  Save this paper

Internationalisation of Financial Markets: Some Implications for Macroeconomic Policy and for the Allocation of Capital

Author

Listed:
  • Mitsuhiro Fukao

    (OECD)

  • Masaharu Hanazaki

    (OECD)

Abstract

This paper analyses the effects of the internationalisation of financial markets on the conduct of macroeconomic policy and the allocation of capital. It first examines the increased integration between domestic and external (or "Euro") financial markets and the recent tendency towards convergence of real interest rates among financially open countries. After briefly touching on the macro policy consequences of financial internationalisation, the paper then deals with long-term implications for the international allocation of capital, with special emphasis on the existence of tax distortions. Using estimated tax wedges for business investment and the supply block of the INTERLINK system, it shows that, under integrated financial markets, the existing tax distortions could generate a large imbalance in the net external asset position which involves a significant welfare cost ... Ce document analyse les effets de l'internationalisation des marchés financiers sur la conduite de politique économique et la répartition du capital. Il examine tout d'abord l'intégration croissante entre les marchés financiers domestiques et internationaux (ou Euro-marchés), et la tendance récente à la convergence des taux d'intérêt réels entre les pays financièrement ouverts. Après une brève analyse des conséquences de l'internationalisation financière pour la politique économique, ce document examine les implications à long terme de la répartition internationale du capital en insistant sur l'existence de distorsions fiscales. A partir d'estimations des "coins fiscaux" pour l'investissement et à l'aide du bloc d'offre du modèle INTERLINK, ce document montre que, dans le cadre de marchés financiers intégrés, les distorsions existantes dans les systèmes d'imposition peuvent engendrer un large déséquilibre de la position extérieure nette impliquant un coût social significatif ...

Suggested Citation

  • Mitsuhiro Fukao & Masaharu Hanazaki, 1986. "Internationalisation of Financial Markets: Some Implications for Macroeconomic Policy and for the Allocation of Capital," OECD Economics Department Working Papers 37, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:37-en
    DOI: 10.1787/322664267766
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/322664267766
    Download Restriction: no

    File URL: https://libkey.io/10.1787/322664267766?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Denise Côté & Christopher Graham, 2004. "Convergence of Government Bond Yields in the Euro Zone: The Role of Policy Harmonization," Staff Working Papers 04-23, Bank of Canada.
    2. de Brouwer,Gordon, 1999. "Financial Integration in East Asia," Cambridge Books, Cambridge University Press, number 9780521651486, October.
    3. Daniele Checchi, 1992. "What are the Real Effects of Liberalizing International Capital Movements?," Open Economies Review, Springer, vol. 3(1), pages 83-125, February.
    4. Chinn, Menzie D & Frankel, Jeffrey A, 1995. "Who drives real interest rates around the Pacific Rim: the USA or Japan?," Journal of International Money and Finance, Elsevier, vol. 14(6), pages 801-821, December.
    5. Antje Hildebrandt & Duy T. Huynh-Olesen & Katharina Steiner & Karin Wagner, 2013. "Residential Property Prices in Central, Eastern and Southeastern European Countries," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 2, pages 52-76.
    6. Menzie Chinn & Jeffery Frankel, 1995. "The relative influence of US and Japan on real interest rates around the Pacific Rim," International Finance 9508004, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:ecoaaa:37-en. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/edoecfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.