International capital flows, financial stability and growth / Graciela L. Kaminsky

The explosion and dramatic reversal of capital fl ows to emerging markets in the 1990s have =ignited a heated debate, with many arguing that globalization has gone too far and that = international capital markets have become extremely erratic. In contrast, others have emphasized that globalization allows capital to move to its most attractive destination, fuelling higher growth. This paper re-examines the characteristics of international capital fl ows since 1970 and summarizes the fi ndings of research of the 1990s on the behaviour of international investors as well as the short- and long-run effects of globalization on fi nancial markets and growth.
A brief history of capital fl ows -- The behaviour of mutual funds -- The behaviour of banks -- Globalization and volatility -- Managing international capital flows -- Conclusion.

22 p. : graphs, tables

On cover: Economic & Social Affairs.
Includes bibliographical references (p. 21-22).