Handbook of Safeguarding Global Financial Stability

Chapter 2

Emerging Markets Politics and Financial Institutions

A. Abiad

International Monetary Fund, Washington (DC), USA

Outline

Introduction

Analytical Framework

Testing the Abiad–Mody Results on a Wider Sample

Differing Influences, Across Types of Countries and Types of Reform

Advanced Versus Nonadvanced Economies

Domestic Financial Reform Versus Opening up the Capital Account

Conclusion

Appendix

References

Over the past 30 years, there has been a strong push across many countries toward financial liberalization – both in the matter of opening up the domestic financial sector to market forces and removing restrictions on inflows and outflows of international capital. But these movements toward greater liberalization also differ considerably ...