Financial Integration and Macroeconomic Volatility in the ECCU
Financial Integration and Macroeconomic Volatility in the ECCU

Author: Kari Grenade

Publisher:

Published: 2004

Total Pages: 30

ISBN-13:

DOWNLOAD EBOOK

"This paper explores the link between financial integration and macroeconomic volatility in the countries of the Eastern Caribbean Currency Union (ECCU) over the period 1986-2003. The paper distinguishes between overall macroeconomic volatility and sectoral volatility. Contrasting results are obtained. While financial integration is associated with lowering consumption volatility, it is linked with rising investment volatility. The results also show that the relationship between overall macroeconomic volatility and financial integration has not been stable over time. The paper advocates that the ECCU should ensure financial integration is accompanied by the reforms that deliver the institutional quality needed to maximize the benefits to economic welfare" -- Abstract.

Financial Integration and Macroeconomic Volatility
Financial Integration and Macroeconomic Volatility

Author: Mr.Ayhan Kose

Publisher: International Monetary Fund

Published: 2003-03-01

Total Pages: 29

ISBN-13: 1451846991

DOWNLOAD EBOOK

This paper examines the impact of international financial integration on macroeconomic volatility in a large group of industrial and developing economies over the period 1960-99. We report two major results: First, while the volatility of output growth has, on average, declined in the 1990s relative to the three preceding decades, we also document that, on average, the volatility of consumption growth relative to that of income growth has increased for more financially integrated developing economies in the 1990s. Second, increasing financial openness is associated with rising relative volatility of consumption, but only up to a certain threshold. The benefits of financial integration in terms of improved risk-sharing and consumption-smoothing possibilities appear to accrue only beyond this threshold.

The Eastern Caribbean Economic and Currency Union
The Eastern Caribbean Economic and Currency Union

Author: Mr.Alfred Schipke

Publisher: International Monetary Fund

Published: 2013-04-10

Total Pages: 546

ISBN-13: 1616352655

DOWNLOAD EBOOK

The Eastern Caribbean Economic and Currency Union (OECS/ECCU) is one of four currency unions in the world. As in other parts of the world in the aftermath of the global economic and financial crisis, the region is at a crossroads, facing the major challenges of creating jobs, making growth more inclusive, reforming the banking system, and managing volatility, while grappling with high public debt and persistent low economic growth. Policymakers have the critical task of implementing strong reforms to strengthen the monetary union while also laying the foundation for accelerating growth. This Handbook provides a comprehensive analysis of the key issues in the OECS/ECCU, including its organization and economic and financial sector linkages, and provides policy recommendations to foster economic growth.

Macroeconomic Volatility, Institutions and Financial Architectures
Macroeconomic Volatility, Institutions and Financial Architectures

Author: José Maria Fanelli

Publisher: Palgrave MacMillan

Published: 2008-01-17

Total Pages: 508

ISBN-13:

DOWNLOAD EBOOK

The deregulation of domestic financial markets and the capital account in developing countries has frequently been associated with financial turmoil and macro volatility. The book analyzes the experience of Argentina, Brazil, Chile, China, Nigeria, Russia, South Africa, and Thailand, and draws implications for building development-friendly domestic and international financial architectures. The recommendations are made in light of the key challenge: to design and implement policies able to control macro volatility while building the rules of the financial game that will ultimately contribute to mitigating the sources of aggregate risk.

Macroeconomic Volatility and International Integration
Macroeconomic Volatility and International Integration

Author: Marta Arespa

Publisher:

Published: 2015

Total Pages: 0

ISBN-13:

DOWNLOAD EBOOK

This paper explores the effects that varying degrees of international openness have on macroeconomic volatility. The analysis is conducted for a two-symmetric-country world under three levels of international integration: that of a closed economy, a financial autarky, and full financial integration. Different degrees of trade openness are considered in the form of home biases, while the economy is left vulnerable to total factor productivity and innovation shocks. Full financial integration is found to reduce firm-size volatility and volatility in the mass of operative firms following a productivity shock and to increase them after an innovation shock. Moreover, the interaction between international sharing of profits and terms of trade transmissions determines the non-linear behaviour of consumption-to-output ratio volatility found in empirical studies.

Deep financial integration and volatility
Deep financial integration and volatility

Author: Sebnem Kalemli-Ozcan

Publisher:

Published: 2010

Total Pages: 74

ISBN-13:

DOWNLOAD EBOOK

We investigate the relationship between financial integration and output volatility at micro and macro levels. Using a very large firm-level dataset from EU countries over time, we construct a measure of "deep" financial integration at the regional level based on foreign ownership at the firm level. We find a positive effect of foreign ownership on volatility of firms' outcomes. This effect survives aggregation and carries over to regional output. Exploiting variation in the transposition dates of EU-wide legislation, we find that high trust regions in countries who harmonized capital markets sooner have higher levels of financial integration and volatility.