Adopting Currency Convertibility: Experiences and Monetary Policy Considerations for Advanced Developing Countries

Abstract

This is a Working Paper and the author would welcome any comments on the present text. Gtations should refer to a Working Paper of the International Monetary Fund, mentioning the author, and the date of issuance. The views expressed are those of the author and do not necessarily represent those of the Fund.

Introduction: the diffusion of liberalization

“…136 Kahler 1994. 137 Many examples could be cited, but for an explicit effort to pass on the positive lessons of liberalization see Quirk 1994. 138 Eising 2002. 139 Levi-Faur 2003. It may be that learning happens at the global level, and it may be that it happens among groups of peers who share information and whose experiences are more relevant to each other.…”

The S-Curve: Understanding the Dynamics of Worldwide Financial Liberalization

“…Fourth, learning about the e↵ects of financial reforms on economic growth across countries and over time is a general policy-formation process that encompasses policy emulation and knowledge dissemination. Some studies take emulation as evidence of learning (Meseguer, 2005;Abiad and Mody, 2005); others argue that international financial institutions played an important role as informational facilitator to disseminate the knowledge learned from the success of financial reform leaders to the rest of the world (Quirk et al, 1994). Our model provides a concrete and structural interpretation of these (reduced-form) views within one single framework.…”

Untitled

“…The second view is that IFIs served as a global informational facilitator, or a conduit for cross-country learning, through its annual multilateral surveillance missions and financial arrangements (Haas, 1959). Reform recommendations put forth and knowledge disseminated by the IFIs were primarily based on its extensive research drawn from experiences of other countries (Quirk et al, 1994).…”

“…Fourth, learning about the e↵ects of financial reforms on economic growth across countries and over time is a general policy-formation process that encompasses policy emulation and knowledge dissemination. Some studies take emulation as evidence of learning (Meseguer, 2005;Abiad and Mody, 2005); others argue that international financial institutions played an important role as informational facilitator to disseminate the knowledge learned from the success of financial reform leaders to the rest of the world (Quirk et al, 1994). Our model provides a concrete and structural interpretation of these (reduced-form) views within one single framework.…”