Publisher's Synopsis
The last two decades have witnessed far reaching changes in the world economy. Principal among these has been the progressive integration of the world?s national and international financial markets. This book provides a review of financial market integration as it affects industrialized economies. It is divided into three parts, each corresponding to one of three major aspects of financial integration. Part 1 assesses the role of historical?institutional developments in promoting financial integration. Part 2 draws on a selection of open economy macro-models to establish the macro-theoretical principles underpinning macropolicy. Part 3 provides a review of macropolicy experiences in a group of 15 OECD countries. By incorporating these three principal aspects of financial integration into a single analytical framework, the author is able to offer a description of the process of financial integration in the world economy and an assessment of the extent to which the major theoretical policy prescriptions and predictions under conditions of financial integration are supported by the generality of country experiences. In addition, the author provides a comprehensive and up-to-date bibliography of the relevant literature in the areas covered. The book should prove an invaluable reference to academics and advanced undergraduate and post graduate students taking courses in macroeconomics. It should also serve as a good reference source for those economists employed in public and private sector institutions interested in understanding the implications of financial integration in the world economy.
