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On The Capital Account Liberalization In Developing Countries

Posted on:2003-12-25Degree:MasterType:Thesis
Country:ChinaCandidate:J X QiangFull Text:PDF
GTID:2206360065461958Subject:World economy
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Decision-makers in developing countries are by and by faced with the problem of liberalization of capital account,which is an important part in the liberalization of a country's external economic sections.Although great controversies are caused among economists over the problem of liberalization of capital account,however,the problem itself should not only be examined from the bi-dimension of monetary banking and development economics,but also be considered in view of the whole reform in developing countries.The process of liberalization of capital account,no matter radical or progressive,is closely connected with the domestic environment,institution and policies in developing countries. Apart from the general interests,liberalization of capital account in developing countries can gain some special benefits. On the other hand,liberalization of capital account in developing countries is a double-edged sword,which means it would also bring about great potential risk. But this risk is often intermingled with the internal and external non-equilibrium of a country's macro-economy.Under the conditions of open economy,controversial clashes often lie between the internal and external equilibrium of macro-economy,so we must adopt the method of policy combination in order to realize the internal and external equilibrium of national economy,through the organic combination of all sorts of policies. Consequently,liberalization of capital account,like any other concrete specific measures of reform,can not be carried out without the co-ordination of a series of domestic economics conditions or relevant reform measures.All in all,liberalization of capital account is a major part in financial and economic liberalization. It depends on the development of the whole reform on the economic development model in developing countries,while at the same time it can boost the reform of the model as well. It is also in this sense that the liberalization of capital account has become the common tide in developing countries.
Keywords/Search Tags:international finance, capital account, liberalization
PDF Full Text Request
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