国际金融练习ch07.doc

Chapter 7: The International Financial Architecture and Emerging Economies I. Chapter Overview Chapter 7 begins with a discussion of recent developments in the global capital markets. One key development is the growth of foreign direct investment (FDI). Table 7-1 shows that growth of FDI flows greatly outpaced that of word exports, while Table 7-2 shows that more than 70 percent of these flows are among the developed economies. The section concludes with a presentation on capital flows to the emerging economies. The second section of the chapter considers the role of capital flows on economic growth and economic stability. There is a brief review of some of the problems described in chapter 6, which are pervasive to financial markets. The section concludes that there are benefits and risk to liberalized capital markets and that financial intermediaries are important to the efficient allocation of these capital flows. The third section of the chapter investigates the role of capital flows in recent financial crises. Capital controls are also discussed. The fourth section of the chapter explores the debate on the appropriate type of exchange rate regime for the emerging economies. Dollarization, described in Chapter 3, is revisited and the pros and cons of dollarization of the emerging economies are considered. The section then turns to the role of the International Monetary Fund (IMF) and the World Bank. The final section of the chapter addresses some of the criticisms of the IMF and World Bank and offers a table of various proposals for reforming these international institutions. II. Chapter Outline A. International Capital Flows 1. Explaining the Direction of Capital Flows a. Foreign Direct Investment and Developed Nations b. Cross-Border Mergers and Acquisitions c. The Emerging Economies 2. Capital Allocations and Economic Growth a. How Capital Inflows Can Smooth the Domestic Economy b. How Capital Inflows Can Contribute to