Jump to ContentJump to Main Navigation
International Financial MarketsThe Challenge of Globalization$
Users without a subscription are not able to see the full content.

Leonardo Auernheimer

Print publication date: 2003

Print ISBN-13: 9780226032146

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226032153.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 28 September 2021

Should We Fear Capital Flows?

Should We Fear Capital Flows?

Chapter:
(p.103) Chapter Three Should We Fear Capital Flows?
Source:
International Financial Markets
Author(s):

René M. Stulz

Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226032153.003.0004

This chapter analyzes the advantages and disadvantages of capital flows for the international financial market. It explains the benefits of capital mobility which include reduction of the cost of capital, improvement in corporate governance and differentiation of a country's capital from its investments. This chapter considers the issue of whether the costs of sudden withdrawals of capital by foreign investors can offset the benefits of capital mobility. It also argues that the appropriate policies to eliminate the fragility of emerging economies are policies that foster better financial structures, so that long-term contracting can be supported.

Keywords:   capital flows, international financial markets, capital mobility, cost of capital, corporate governance, foreign investors

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.