If You’re Going Through Hell, Keep Going: Non-linear Effects of Financial Liberalization in Transition Economies

Hartwell, Christopher A.

doi:10.1080/1540496x.2016.1180284

Cited by 2 publications

(1 citation statement)

References 49 publications

(39 reference statements)

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“…In turn, financial liberalization could affect the risks of a crisis. This hypothesis has been tested in recent empirical studies, which found that liberalization tends to increase the probability of a crisis (Tornell, Westermann, and Martinez 2004;Rancière, Tornell, and Westermann 2006), although this risk may decline when the institutional environment is strong (Demirgüç-Kunt and Detragiache 1998) or as liberalization proceeds (Hartwell 2017).…”

Section: The Impact Of Liberalization On the Risk Of Crisismentioning

confidence: 99%

Financial Repression is Knocking at the Door, Again

Jafarov

Maino

2019

IMF Working Papers

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Financial repression (legal restrictions on interest rates, credit allocation, capital movements, and other financial operations) was widely used in the past but was largely abandoned in the liberalization wave of the 1990s, as widespread support for interventionist policies gave way to a renewed conception of government as an impartial referee. Financial repression has come back on the agenda with the surge in public debt in the wake of the Global Financial Crisis, and some countries have reintroduced administrative ceilings on interest rates. By distorting market incentives and signals, financial repression induces losses from inefficiency and rent-seeking that are not easily quantified. This study attempts to assess some of these losses by estimating the impact of financial repression on growth using an updated index of interest rate controls covering 90 countries over 45 years. The results suggest that financial repression poses a significant drag on growth, which could amount to 0.4-0.7 percentage points.

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Section: The Impact Of Liberalization On the Risk Of Crisismentioning

confidence: 99%

Financial Repression is Knocking at the Door, Again

Jafarov

Maino

2019

IMF Working Papers

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International Experience of Capital Flows Liberalization

Repko¹,

Kashko²,

Piontkivska³

2016

Visn. Nat. Bank Ukr.

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In this research we concentrate on such instruments of regulatory policy as restrictions for capital flow and currency regulation. The study highlights the international experience of managing capital flows, considers the consequences of policies to manage capital flows and currency regulation in the world, and summarizes the recommendations of international financial institutions in this regard. Given the globalization of economic processes and the high level of openness in the Ukrainian economy, a strategic goal of currency regulation reform in the country has to be the gradual liberalization of capital flows. This is particularly observed in the Association Agreement with the EU and other documents. In order to take full advantage of liberalization and minimize the risks associated with volatile capital flows, it is necessary to implement a series of measures aimed at improving institutional capacity to manage the effects of both the inflow and outflow of capital in the intermediate stages of liberalization. The approach generally corresponds to the Comprehensive Program for Financial Sector Development in Ukraine Until 2020, the IMF, and the Memorandum of Association Agreement between Ukraine and the EU.

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If You’re Going Through Hell, Keep Going: Non-linear Effects of Financial Liberalization in Transition Economies

Cited by 2 publications

References 49 publications

Financial Repression is Knocking at the Door, Again

Financial Repression is Knocking at the Door, Again

International Experience of Capital Flows Liberalization

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