Emerging Economies and the Global Financial System : Post-Keynesian Analysis book cover
1st Edition

Emerging Economies and the Global Financial System
Post-Keynesian Analysis

ISBN 9780367111427
Published May 5, 2021 by Routledge
290 Pages 16 B/W Illustrations

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Book Description

This book provides a comprehensive overview of the financial integration of emerging economies through an in-depth analysis of the international monetary system, how it impacts capital flows and exchange rates, and its implications for policy making.

The financial integration of emerging economies has been a remarkable development of the past two decades. The growth of cross-border transactions and asset ownership, not least through the accumulation of foreign exchange reserves, has put many of these countries in a more prominent, if still peripheral, position within the global financial system. This has not been a smooth process, as integration has been marked by cyclical waves of capital flows, with financial and currency instability often accompanying the acute phases of these cycles. While conventional economic theory traditionally sees financial integration as a positive development, Post-Keynesian economists, working in the tradition of Keynes, Minsky and Kalecki, have long taken a more sceptical viewpoint. By centring the analysis of financial dynamics on concepts as liquidity, uncertainty, balance-sheet structures and institutions, Post-Keynesian theory highlights the intrinsic character of shocks imposed by financial integration upon emerging economies, and their implications for economic growth and distribution. This book demonstrates that these analyses can be fruitfully used to gain a better understanding of financial (in)stability and economic development in emerging economies as they integrate into the global financial system.

This work provides key reading for students and scholars of economics, political economy and finance that are interested in the financial integration of emerging economies, and how the heterodox tradition of Post-Keynesian economics contributes to its analysis.

Table of Contents

Part I. Introduction and Background

1. Introduction

Bruno Bonizzi, Annina Kaltenbrunner and Raquel A. Ramos

2. Two Post-Keynesian approaches to international finance: the compensation thesis and the cambist view

Marc Lavoie

3. Trade versus capital flows: the key implicit and methodological differences between the neoclassical and the Post Keynesian approaches to exchange rate determination

John T. Harvey

PART II. Minsky, balance sheets and cycles

4. A Minskyan framework for the analysis of financial flows to emerging economies

Bruno Bonizzi and Annina Kaltenbrunner

5. Post Keynesian and structuralist approaches to boom-bust cycles in emerging economies

Karsten Kohler

6. Cost competitiveness and asset prices as determinants of the current account in emerging economies

Alexander Guschanski and Engelbert Stockhammer

7. Space in Post Keynesian monetary economics: an exploration of the literature

Gary Dymski and Annina Kaltenbrunner

PART III. Currency Hierarchy

8. Evolving international monetary and financial architecture and the development challenge: a liquidity preference theoretical perspective

Jörg Bibow

9. International money, privileges and underdevelopment

Hansjörg Herr and Zeynep Nettekoven

10. The Post Keynesian View on Exchange Rates: towards the consolidation of the different contributions in the ABM and SFC frameworks

Raquel A. Ramos and Daniela Magalhães Prates

11. A Post Keynesian framework for real exchange rate determination: an overview

Lúcio Barbosa, Frederico G. Jayme Jr. and Fabrício J. Missio

Part IV. Current Account and Growth

12. The Kaleckian theory of exchange rates

Jan Toporowski

13. Financial liberalisation, exchange rate dynamics and the financial Dutch disease in developing and emerging economies

Alberto Botta

14. Global financial flows in Kaleckian models of growth and distribution: a survey

Pablo G. Bortz

Part V. Policy Implications

15. Implications of Modern Money Theory on Development Finance

Yan Liang

16. Monetary sovereignty in the Post Keynesian perspective: in the search of a concept

Daniela Magalhães Prates

17. Dealing with global financial asymmetry: Contributions of Regional Monetary Cooperation Between Emerging Markets and Developing Countries

Laurissa Mühlich and Barbara Fritz

18. De-regulation of Finance in China and India: a Post Keynesian Analysis

Sunanda Sen

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Bruno Bonizzi is a Senior Lecturer in Finance at the University of Hertfordshire, Business School, UK.

Annina Kaltenbrunner is Associate Professor in the Economics of Globalisation and the International Economy at Leeds University Business School, UK.

Raquel A. Ramos is a Research Associate at the Centre d’Économie de l’Université Paris Nord, France.