Documente Academic
Documente Profesional
Documente Cultură
C S LEONARD
UNIVERSITY OF OXFORD
90 83
68
60 56
48 51
40
30
30 22 25 24
14 13 15 15 17
11
6 8 8 5 5 4
1 3 1 1 1 0
0
1962
1965
1968
1971
1974
1977
1980
1960
1961
1963
1964
1966
1967
1969
1970
1972
1973
1975
1976
1978
1979
1981
1982
1983
1984
1985
1986
1987
DATA SOURCE: Michael Minor, “The demises of expropriation as an instrument18/03/2009
Leonard GSOM Emerging Markets March 2009
of LDC
policy, 1980-1992”, Journal of International Business Studies, 1994, pp. 177-188.
Number of countries expropriating
9
foreign assets
40
30 29 28
20 20
20 18
14 14 13 13
10 11
7 8 8 8
5 5 5 5
3 2 1 3 1 1 1
0
0
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
DATA SOURCE: Michael Minor, “The demises of expropriation as an instrument18/03/2009
Leonard GSOM Emerging Markets March 2009
of LDC
policy, 1980-1992”, Journal of International Business Studies, 1994, pp. 177-188.
Controls on capital flows
10
Longer run
Foreign financing in Ems moves from bonds (19th century) to
banks after WWII, to bonds (Brady bonds), to equity
Countries move from protectionist policies, import –
substitution, forced upon them in the 1930s, to period of GDP
and rapid trade growth in the 1970s (even during the two oil
price spikes of 1973 and 1979, with non-oil producing
countries spending to meet demand, to the 1980s, a period of
stagnation in some countries (LA), to official relief, to
privatization and equity markets
General state: from crisis, to stability, to crisis
International arrangements: GATT (Tokyo Round) imposes
discipline and provides incentives for trade
CHARACTERISTICS
Banking Institutions:
The “Core Principles for Effective Banking Supervision and Regulation” of the Basle
Committee on Banking Supervision (composed of G-10 Senior Bank Supervisors),
provides a good assessment of the components of an effective system.
Its main five elements include:
Encourage self-regulation.
In other words, EM s different from DE, because the debt/equity ratio can rise
rapidly. (1) collateral constraints, in the form of a margin requirement that
limits the ability of an emerging economy to use domestic finane This is a “fire
3
sale” in the sense that domestic agents rush to adjust their equity position
below the position they would optimally hold in the absence of margin
constraints. Collateral constraints, in the form of a margin requirement that
limits the ability of the Ems cannot use equity to leverage foreign debt, and (2)
asset trading costs, intended to capture the effects of informational or
institutional frictions affecting the ability of foreign traders to trade the equity
of emerging economies.