Financial Developments in National and International Markets

260 Pages·2006·0.85 MB·English

by  Philip Arestis, Jesus Ferreiro, Felipe Serrano (eds.)

Financial Developments in
National and International
Markets
Edited by
Philip Arestis, Jesus Ferreiro and
Felipe Serrano
Financial Developments in National and
International Markets
This page intentionally left blank
Financial Developments in
National and International
Markets
Edited by
Philip Arestis
Jesus Ferreiro
and
Felipe Serrano
© Selection and editorial matter © Philip Arestis,Jesus Ferreiro and
Felipe Serrano 2006
Individual chapters © contributors 2006
Softcover reprint of the hardcover 1st edition 2006 978-1-4039-9629-9
All rights reserved.No reproduction,copy or transmission of this
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as the authors of this work in accordance with the Copyright,
Designs and Patents Act 1988.
First published 2006 by
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ISBN 978-1-349-54532-2 ISBN 978-0-230-52237-4 (eBook)
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Library of Congress Cataloging-in-Publication Data
Financial developments in national and international markets /
edited by Philip Arestis,Jesus Ferreiro,and Felipe Serrano.
p.cm.
Includes bibliographical references and index.
1.Capital market.2.Capital market – Developing countries.
I.Arestis,Philip,1941– II.Ferreiro,Jesus.III.Serrano,Felipe,1953–
HG4523.F54 2005
332(cid:2).0415—dc22 2005048138
10 9 8 7 6 5 4 3 2 1
15 14 13 12 11 10 09 08 07 06
Contents
Notes on the Contributors vii
Introduction xi
1 The Disutility of International Debt: Analytical Results
and Methodological Implications 1
Greg Hannsgen
2 On the Changing Nature of Currency Crises 25
Korkut A. Erturk
3 Financial System Regulation Stability versus Instability:
Some Strategic Consideration 40
David Ceballos and David Cantarero
4 The Bretton Woods Institutions Sixty Years Later:
A ‘Glocal’ Reform Proposal 56
Sergio Rossi
5 The Monetary Policy of the ECB and the Fed: Credibility versus
Confidence, a Comparative Approach 77
Edwin Le Heron and Emmanuel Carré
6 The Case for Fiscal Policy 103
Philip Arestis and Malcolm Sawyer
7 Is an Increase of the Fiscal Budget at EMU Level Desirable? 118
Davide Furceri
8 How Sensitive Is the Dollar to Economic Policy? 133
Elias Karakitsos
9 The Pattern of Inward FDI Geographical Distribution:
Can Developing Countries Base Their Development
on Those Flows? 149
Jesus Ferreiro, Carmen Gomez and Carlos Rodriguez
10 Financial Deregulation and Capital Flows in
Latin American Countries 165
Eugenia Correa and Gregorio Vidal
11 The Impact of Multinational
Banking on Domestic Banking 176
Claude Gnos and Louis-Philippe Rochon
v
vi Contents
12 Spanish Foreign Direct Investment in Latin America,
1989–2004: A Constructivist Framework for Analysis 190
Pablo Toral
13 Role of the International Monetary Fund in the Economic
Policy-making and Growth of the Baltic Countries 225
Ulvi Vaarja
Index 239
Notes on the Contributors
Philip Arestis is University Director of Research, Cambridge Centre for
Economics and Public Policy, Department of Land Economy, University of
Cambridge, and Professor of Economics at the Levy Economics Institute,
New York. He is also Visiting Professor, University of Leeds and the School of
Oriental and African Studies (SOAS), University of London. His research
interests are in the areas of macroeconomics, monetary economics, applied
econometrics, political economy and applied political economy. He has pub-
lished a number of books, contributed invited chapters to books, and has
published widely in academic journals.
David Cantarerohas a PhD in Economics and is currently Assistant Lecturer
at the University of Cantabria. His principal research areas are fiscal federal-
ism and health economics. From 2003 he has participated in projects for
National Research (Ministry for Science and Technology) and the Institute
for Fiscal Studies. Dr Cantarero has two Young Research Awards and several
published papers.
Emmanuel Carréis a PhD student at the University Montesquieu-IFREDE in
Bordeaux. He has Master’s degrees in Economics and Sociology. His research
interests are in the areas of monetary policy strategy, inflation targeting
regimes, central banking in general, and deliberation inside monetary policy
committees. He is the author of papers on these subjects in foreign edited
books in the USA and Mexico.
David Ceballos has a PhD in Economics and is currently an Assistant
Lecturer at the University of Barcelona. His principal research areas are financial
mathematics and financial time. In 1999 he co-founded IAFI (Investigación
en Análisis Financiero y de la Incertidumbre), a finance research group at the
University of Barcelona. Dr Ceballos has participated in and organized
several congresses and seminars in financial mathematics.
Eugenia Correa is a Professor in Economic Finance at the National
University of Mexico. She has a PhD degree from the National University of
Mexico and is a member of the Mexican Science Academy. Her research
interests are in the areas of macroeconomic finance policy and foreign direct
investments. She is the author of several books, a number of papers on her
research subjects in refereed Spanish and foreign journals, and of chapters in
edited books.
vii
viii Notes on the Contributors
Korkut A. Erturk is Associate Professor of Economics at the University of
Utah, where he has been serving as Chair of the Economics Department
since 2002, and a Research Associate at the Levy Economics Institute. He
gained his BA and PhD at New York University and New School University,
respectively. He is the author of numerous articles on heterodox macroeco-
nomics and currency crises.
Jesus Ferreirois a Reader in Economic Policy at the University of the Basque
Country in Bilbao. He has a PhD degree from the University of the Basque
Country. His research interests are in the areas of macroeconomic policy,
incomes policy, labour markets and foreign direct investment. He is the
author of a number of papers on these subjects in refereed Spanish and
foreign journals, and of chapters in edited books.
Davide Furceriis a PhD student at the University of Illinois at Chicago. He
gained a Laurea Degree in Statistics and Economics from the University of
Palermo in 2001, and an MS in Economics from the Coripe, in 2002. His
research interests are in the areas of macroeconomics, international eco-
nomics and European integration. He is the author of a number of papers on
these subjects in refereed Italian and foreign journals.
Claude Gnos is Associate Professor of Economics at the University of
Burgundy and Director of the Centre for Monetary and Financial Studies in
Dijon. He is the author of L’Euro and Les grands auteurs en économie, and co-
editor, with Louis-Philippe Rochon, of Post Keynesian Principles of Economic
Policy (Edward Elgar, forthcoming), and The Keynesian Multiplier (Routledge,
forthcoming) also with Louis-Philippe Rochon. He has also published a num-
ber of articles in refereed journals on monetary economics, circuit theory and
the history of economic thought (Journal of Post Keynesian Economics, Review of
Political Economy, International Journal of Political Economy, Economie Appliquée).
Carmen Gomezis a Lecturer in Economics at the University of the Basque
Country in Bilbao. She has a PhD degree from the University of the Basque
Country. Her research interest are in the areas of foreign direct investments
and labour markets. She is the author of several papers and chapters of books
on those subjects.
Greg Hannsgen holds a PhD in Economics from the University of Notre
Dame, Indiana, is a resident research associate at the Levy Economics
Institute of Bard College, Annandale-on-Hudson, New York, and the editor
of many Levy Institute publications. His primary research interests are
endogenous money, the monetary transmission mechanism, and social eco-
nomics, and publications include ‘Minsky’s Acceleration Channel and the
Role of Money’, Journal of Post Keynesian Economics, Spring 2005.
Elias Karakitsosis Chairman of Global Economic Research and an Associate
Member of the Cambridge Centre for Economic and Public Policy,
Notes on the Contributors ix
University of Cambridge. He was at Imperial College for twenty-five years,
where he held the Chair of Economics and was Head of Economics for ten
years. He has acted as an adviser to UK, US and EU governments, and as an
investment adviser to many financial institutions, including Citibank,
Oppenheimer, Allianz, Credit Agricole and Standard Chartered. He is the
author of five books/monographs, seventy-six papers in learned journals and
188 reports on financial markets.
Edwin Le Heron is Maître de Conférences in Economics at the Institut
d’Études Politiques in Bordeaux and a member of the CRECQSS (Centre de
Recherche et d’Études sur le Canada et le Québec en Sciences Sociales). He
is also the president of the ADEK (Association for the Development of
Keynesian Studies), which gathers French economists interested in post-
Keynesian works ([email protected]). ADEK was created by Alain Barrère for the
organization of the Keynes Today conference in 1983 (published as Keynesian
Economic Policyby Macmillan, 2 vols, 1990). His research interests are mone-
tary policy, post-Keynesian monetary theory, and history of thought (French
monetary thought in the eighteenth century). His latest published works on
monetary policy are in Investigaciòn Econòmica, Mexico, no. 249 – 2004.
Louis-Philippe Rochon is Assistant Professor of Economics at Laurentian
University, Canada. He gained his PhD at the New School for Social Research
in New York. He has published extensively in monetary theory and policy,
and post-Keynesian economics. He is the author and editor of several books,
including Credit, Money and Production: An Alternative Post-Keynesian Approach
(Edward Elgar, 1999), Credit, Money and Interest Rates: Essays on Horizontalism
(Edward Elgar, 2001), Modern Theories of Money(Edward Elgar, 2003), Théories
monétaires post keynésiennes (Economica, 2003) and Monetary and Exchange
Rate Systems: A World View over Financial Crises(Edward Elgar, forthcoming).
He is the author of numerous articles in Review of Political Economy, Journal of
Post Keynesian Economics, Journal of Economic Issues, Economie Appliquée,
International Journal of Political Economyand European Journal of the History of
Economic Thought.
Carlos Rodriguezis a Reader in Economics at the University of the Basque
Country. He has worked in the field of foreign direct investment for several
years and authored several publications in leading Spanish journals.
Sergio Rossiis Associate Professor of Economics at the University of Fribourg
and at the University of Lugano. He has a DPhil degree from the University
of Fribourg and a PhD degree from the University of London (University
College). His research interests are in the area of monetary macroeconomics.
He has authored and edited a number of books on monetary theory and pol-
icy. He has recently published articles in the International Journal of Political
Economy,International Review of Applied Economics,Journal of Asian Economics,
and in the Swiss Review of Economics and Statistics.