Journal Forum Bosnæ

Number 37, 03. february 2006.

ECONOMIC SOVEREIGNTY AND GLOBAL CAPITAL FLOWS

Fikret Čaušević

Contents

Žarko Papić

FOREWORD...(5)

INTRODUCTION...(13)

PART ONE

FINANCIAL LIBERALIZATION...(17)

Financial Liberalization and Economic Activity...(19)

Financial Liberalization: Beginnings and Development...(29)

Financial Deregulation, Control, Capital Adequancy, and Supervision...(40)

Financial Globalization: Opportunities and Threats...(49)

Structural changes in banking...(54)

Liquidity and the global capital flows...(55)

From opportunities to benefits...(60)

Financial Deregulation and Structural Problems in the Contemporary International Financial System...(65)

The Impact of Financial Deregulation and Globalization...(82)

PART TWO

MACROECONOMIC POLICY AND THE FINANCIAL MARKETS' TRANSMISSION MECHANISM95

Monetary Policy Models – Rules vs Discretion ...(97)

The Optimal State-Contingent Rule...(100)

The Non-contingent Rule...(101)

Pure Discretion...(101)

The Conservative Central Banker Model...(102)

Central Bank Procedures – Required Reserves and Inter-bank Markets...(106)

Domestic Financial Market Structure and Central Bank Credit Funds...(110)

The Financial Market Transmission Mechanism –Monetary Policy and Financial Asset Prices...(117)

A model of the impact of financial asset prices on monetary policy optimization...(122)

The role of securities prices in the money supply transmission mechanism...(125)

Exchange Rate Policy under Deregulation and Free Capital Flows...(127)

The impact of the major world currencies on developing countries’ exchange rates in the Nineties...(129)

Problems of exchange rate system selection...(132)

The Interaction of Capital Mobility, Exchange Rate Policy, and Fiscal Policy...(140)

Capital mobility under a fixed exchange rate...(140)

The fiscal policy of small open economies with perfect capital mobility...(141)

PART THREE

ECONOMIC GROWTH - FINANCIAL DEREGULATION, AND ECONOMIC POLICY: 1980 TO 2004...(145)

Methodological Basis for the Analysis of Results between 1980 and 2004...(147)

National Wealth Coefficients for 1980 and 1998...(150)

Wealth Coefficient calculations and rankings for the top and bottom 20 countries in 1980...(150)

Wealth Coefficient calculations and rankings for the top and bottom 20 countries in 1998...(152)

The national Wealth Coefficients for 1998 calculated on the basis of GDP in USD PPP...(155)

Ranking by fastest Wealth Coefficient Growth between 1980 and 1998...(157)

Analysis of the Degree of Deregulation and Performance in the Economies with fastest Wealth Coefficient Growth between 1980 and 1998...(161)

Degree of financial deregulation achieved between 1980 and 1998...(168)

Countries Ranked 11-20 by Wealth Coefficient Growth...(175)

Analysis of World-wide Economic Trends: 1998-2004...(183)

The fastest growing economies for 1990-1998-2004...(185)

Final Considerations regarding the Link between Financial Liberalization and National Economic Expansion between 1980 and 2004...(195)

Financial Liberalization, Problems of World Financial Architecture and the Scope for Reform...(201)

APPENDIX...(211)

NOTES...(242)

BIBLIOGRAPHY...(255)

INDEX....(261)

The Friends of IFB

The work of International Forum Bosnia is supported by a wide range of organizations and individuals.

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