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International Risk Tolerance, Capital Market Failure and Capital Flows to Emerging Markets

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  • Valpy Fitzgerald

Abstract

The level, tenor and instability of capital flows from global financial markets towards developing countries are a major source of concern for macroeconomic managers, while their causes remain largely unexplained by economic theory. Country 'fundamentals' (such as economic growth, monetary stability and institutional capacity) as sources of default risk have been the main focus of economic research and policy prescriptions.

Suggested Citation

  • Valpy Fitzgerald, 2006. "International Risk Tolerance, Capital Market Failure and Capital Flows to Emerging Markets," WIDER Working Paper Series RP2006-35, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:rp2006-35
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    File URL: https://www.wider.unu.edu/sites/default/files/rp2006-35.pdf
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    References listed on IDEAS

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